Bitcoin network encounters a sudden hashrate decline, impacting market liquidity; experts predict recovery.
- Sudden Bitcoin hashrate decline occurs due to network adjustments.
- Market liquidity impacted as predictions of recovery circulate.
- Experts draw parallels to past liquidity events in the crypto market.
The Bitcoin network experienced a sudden mining shock in late 2025, triggering an 8% hashrate drop amid Xinjiang shutdowns, affecting global miners and the cryptocurrency market at large.
This incident highlights Bitcoin’s network resilience faced with external pressures, as historical patterns suggest potential for a swift recovery despite ongoing market volatility.
Hashrate Plummets from 1,124 EH/s to 1,078 EH/s
The Bitcoin network recently experienced a sudden drop in hashrate, declining from 1,124 EH/s to approximately 1,078 EH/s. This was primarily linked to shutdowns in Xinjiang, China, where a massive exodus of 400,000 mining machines occurred. The network, however, managed to adjust its difficulty upwards by 25% compared to 2024, maintaining some stability.
This unanticipated hashrate shift has financial implications, affecting Bitcoin’s market value. The price collapse was tied to new tariffs and stablecoins, raising Bitcoin’s beta to the S&P 500 at 0.5. Presently, Bitcoin’s value is near $92,000, marking an 18% year-to-date gain.
Profitability Declines for Fourth Consecutive Month
The immediate impact of the hashrate decline has been felt across the crypto mining industry, with profitability decreasing for the fourth consecutive month in November 2025. Markets have responded, with major players acquiring assets during the slump.
“Crypto prices continue to suffer as the drop in market liquidity and function since October 10, which was the largest ever single day liquidation event in the history of crypto. In 2022, the post-FTX liquidity shock took 8 weeks to clear, but similar to prior drawdowns, crypto prices quickly recovered.” — Thomas “Tom” Lee, Chairman of BitMine Immersion (BMNR)
Analysts are tracking the situation closely, aligning current conditions with past market events like the 2022 post-FTX liquidity shock, expecting a potential recovery. Crypto leaders are observing market behavior, particularly with the involvement of key firms such as BMNR in boosting their crypto holdings during price dips.
Parallels Drawn to 2022 Post-FTX Recovery
Comparisons to past incidents, such as the FTX-triggered 2022 liquidity shock, are being made to anticipate recovery timelines. These prior events took weeks to resolve before a V-shaped recovery occurred.
Looking forward, market experts suggest the crypto supercycle remains intact, with potential for prices to stabilize and recover based on historical precedents. This outlook is reinforced by the strategic accumulation of cryptocurrency by large holders, aligning with patterns observed in previous downturns.
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