Were China's Bitcoin mining regulation reports the trigger for market panic?

In December 2025, news of China’s resumed crackdown on Bitcoin[BTC] mining shook the market. The BTC hash rate dropped by approximately 8%, and the story spread across social media with headlines of a “large-scale shutdown.” However, a deeper analysis of on-chain data reveals a very different truth behind this turmoil.

Currently, BTC price hovers around $90.34K, facing short-term volatility. In risk-off markets, even small news can trigger significant FUD. Just as the announcement of tariffs by Trump in October caused $19 billion in forced liquidations, reports of mining restrictions also greatly impacted market sentiment.

The Truth Told by Data: Is the China Mining Halt Real?

A few days after posts on X about mining inspections in Xinjiang, claims that “over 400,000 miners have stopped” began to spread. Coupled with the news of hash rate decline, this story gained momentum and accelerated market anxiety.

However, verifying actual data from multiple mining pools shows a different picture from the reports.

Pool-by-Pool Hash Rate Analysis: Differences Between North America and China

The largest decrease in hash rate actually originated from North American pools. US-based pools like Foundry USA recorded a combined drop of over 200 EH/s. Meanwhile, Chinese pools such as Antpool and F2Pool saw reductions of about 100 EH/s in total.

This data indicates that the overall Chinese mining shutdown was not massive but rather a temporary fluctuation due to geographic dispersion. In fact, most pools recovered to normal levels by December 18, and subsequent hash rate remained stable.

FUD vs. Reality: Possible Temporary Suspensions to Avoid Inspection

The most plausible scenario suggested by the data is that some miners strategically paused operations to evade government inspections. This is not a “large-scale crackdown” but a risk-avoidance behavior.

The initial report claiming “over 400,000 units stopped” was likely exaggerated and served as FUD to stir market sentiment.

Lessons for Investors

The series of events surrounding Chinese Bitcoin mining highlight several key points:

• Hash rate declines are headline-grabbing, but considering the geographic distribution across multiple pools, they are more likely limited fluctuations rather than a complete shutdown.
• Mining-related news tends to provoke emotional reactions; data-driven analysis is essential.
• In risk-off markets, even minor shocks can be amplified intentionally or unconsciously.

This case underscores the importance for market participants to carefully verify on-chain data rather than relying solely on headlines.