The Chinese government intensified its crackdown on cryptocurrency mining activities this week, causing the global Bitcoin network hash rate to plummet by approximately 50% in just a few days, marking the largest decline in history. This sudden regulatory action has triggered what industry insiders call the “Great Migration”—an exodus of miners, with tens of thousands of mining devices being shipped from China to North America, Central Asia, and Eastern Europe. Market research firm BlockInsight’s latest report provides an in-depth analysis of this event’s short-term shock and long-term impact on the global Bitcoin network and cryptocurrency market.
“We are witnessing the largest hash power migration in Bitcoin’s history,” BlockInsight noted in its analysis report. “This shift will reshape the geographic distribution of the global mining industry and may have far-reaching implications for network security, degree of decentralization, and Bitcoin’s environmental impact.”
The Chinese government’s crackdown began with a May 21 meeting of the Financial Stability and Development Committee of the State Council, after which various provinces implemented specific measures. On Monday (June 21), power suppliers in major mining centers including Sichuan, Yunnan, Xinjiang, and Inner Mongolia cut off electricity to mining farms, forcing miners to urgently shut down their equipment. Data shows that the global Bitcoin network hash rate has plunged from 180 EH/s (exahashes per second) in mid-May to less than 90 EH/s currently.
“This is the first time the Bitcoin network has experienced such a large-scale and concentrated decline in hash power,” cryptocurrency analyst Alexander Reid stated. “Although the network is designed to handle such shocks, the recovery process could take months, depending on how quickly miners can redeploy.”
According to BlockInsight estimates, China previously accounted for 65% to 75% of global Bitcoin mining hash power, with Sichuan province becoming the world’s largest mining center during the rainy season due to abundant hydroelectric power. This highly concentrated geographic distribution has long been viewed as a potential risk point for the Bitcoin network, and the current regulatory action is forcing this risk to be redistributed.
“In the long run, the diversification of hash power geographic distribution is beneficial for the Bitcoin network,” BlockInsight stated in its report. “However, in the short term, we’ll see extended transaction confirmation times, increased fees, and a temporary reduction in the overall security margin of the network.”
The Bitcoin network automatically adjusts mining difficulty every two weeks to maintain a block time of approximately 10 minutes. Due to the sharp decline in hash power, the next difficulty adjustment is expected to significantly lower the difficulty, potentially creating the largest single adjustment in history. This will bring higher returns for miners who remain operational, incentivizing more hash power to return to the network.
BlockInsight’s survey indicates that most Chinese miners are considering three main migration destinations: Texas in the United States, Canada, and Kazakhstan. These regions offer competitive electricity prices, stable policy environments, or convenient infrastructure access.
“Texas is becoming one of the preferred destinations for miners,” the BlockInsight report noted. “The state’s abundant renewable energy, relatively friendly regulatory environment, and reliable grid infrastructure make it an ideal location for large-scale mining operations.”
Patricia White, an executive at a mining company based in Texas, stated: “We’ve received numerous inquiries from Chinese miners over the past few weeks. They’re not only seeking locations and power resources but also assistance with equipment transportation, business structure establishment, and regulatory compliance. This is a historically significant industry migration.”
Kazakhstan has attracted many miners due to its low electricity prices and geographic proximity to China. BlockInsight estimates that the country could absorb up to 15% of global Bitcoin hash power in the short term. However, the firm also warns that Kazakhstan’s grid infrastructure may not support the long-term development of large-scale mining activities.
BlockInsight’s research also analyzes potential changes in Bitcoin’s environmental impact following this “Great Migration.” China’s mining power composition was complex, including hydroelectric, coal, and other energy sources. Migration to North America could increase the proportion of renewable energy in Bitcoin mining, especially considering the region’s growing solar and wind power capacity.
“The energy mix of Bitcoin mining is changing,” noted energy policy expert James Taylor. “Although there may be temporary solutions based on fossil fuels in the short term, the long-term trend points toward greater use of renewable energy, partly due to cost-effectiveness and partly due to the need to address environmental criticisms.”
China’s regulatory actions have also impacted global cryptocurrency exchanges and financial services. Several exchanges have ceased providing certain services to Chinese users, while payment channels face stricter restrictions. BlockInsight expects that as the regulatory environment changes, the focus of the Asian cryptocurrency market may gradually shift toward Singapore, Japan, and South Korea.
Regarding Bitcoin prices, BlockInsight believes the short-term negative impact is largely reflected in recent declines. Bitcoin’s price has fallen approximately 50% from its April high of nearly $65,000, currently hovering around $33,000.
“The market is gradually digesting this regulatory shock,” BlockInsight analyzed. “History shows that Bitcoin typically recovers and adapts to new environments after experiencing significant external pressure. The key question is the speed of network reorganization and miner redeployment, which will determine the network stability and confidence recovery in the short term.”
Institutional investors have reacted differently to this event. BlockInsight’s survey shows that approximately 41% of institutional investors view this as a good entry opportunity, believing that diverse hash power distribution benefits the Bitcoin ecosystem in the long term; 35% are temporarily observing, waiting for further clarity in the regulatory environment; the remaining 24% express concern that China may adopt more severe measures and may consider reducing their positions.
“This event reminds us that regulation remains one of the biggest uncertainties facing crypto assets,” senior investment analyst Rebecca Chen stated. “However, it also accelerates the global distribution of the industry, which may enhance the resilience of the entire ecosystem in the long run.”
BlockInsight concluded: “The ‘Great Migration’ of Bitcoin mining will be a process lasting several months, and its full impact is still unfolding. Although the network will face an adjustment period in the short term, from a historical perspective, this could be an important turning point in Bitcoin’s development, pushing it toward a more decentralized and sustainable direction. This transition concerns not only geographic distribution but also broader governance, regulatory, and environmental considerations, which will collectively shape the future of the cryptocurrency industry.”