{"id":880276,"date":"2025-12-24T01:14:05","date_gmt":"2025-12-24T07:14:05","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/24\/inside-chinas-mining-ban-what-it-means-for-bitcoins-2026-outlook\/"},"modified":"2025-12-24T01:14:05","modified_gmt":"2025-12-24T07:14:05","slug":"inside-chinas-mining-ban-what-it-means-for-bitcoins-2026-outlook","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/24\/inside-chinas-mining-ban-what-it-means-for-bitcoins-2026-outlook\/","title":{"rendered":"Inside China\u2019s mining ban: What it means for Bitcoin\u2019s 2026 outlook"},"content":{"rendered":"

Bitcoins <\/p>\n

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Journalist<\/p>\n<\/p><\/div>\n

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Heading into 2026, the market looks to be setting up a clear divergence.<\/span><\/p>\n

On one side, the tone is still risk-off. Bitcoin [BTC] hasn\u2019t reclaimed levels since the October crash, dropping the share of supply in profit<\/a> from 98% before the sell-off to around 63% now. That\u2019s a real squeeze on margins.<\/span><\/p>\n

The result? BTC<\/a>\u2019s NUPL<\/a> is deep into net-loss territory. From a technical standpoint, this looks like a classic capitulation setup. However, a key market divergence suggests this phase may not be bearish after all.<\/span><\/p>\n

Bitcoins Mining shutdown and LTH sales explain Bitcoin\u2019s weakness<\/b><\/h2>\n

Bitcoin\u2019s supply dynamics are seeing a quiet but significant shakeout.\u00a0<\/span><\/p>\n

Notably, most of the pressure is coming from China, which has once again tightened mining restrictions<\/a>. <\/span>Specifically, the Xinjiang crackdown has shut down roughly 1.3 GW of mining capacity, taking 400,000 rigs offline.<\/span><\/p>\n

Simply put, BTC miners are at risk as a large chunk of Bitcoin mining in China has been forced offline. The result? Bitcoin\u2019s hashrate has dropped about 8%, making the network temporarily less secure against attacks.<\/span><\/p>\n

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Source: Blockchain.com<\/p>\n<\/div>\n

As the chart shows, Bitcoin\u2019s hashrate fell from 1.12 billion TH\/s to 1.07 billion TH\/s in less than a week. With China controlling<\/a> around 14% of total hashpower, this highlights how regional moves are adding selling pressure.<\/span><\/p>\n

On-chain data<\/a>\u00a0supports this trend. Asian exchanges have shown consistent net spot selling throughout Q4. At the same time, long\u2011term holders (LTHs) are also reducing positions, with selling activity rising over the past month or two.<\/span><\/p>\n

In short, Bitcoin is facing Asia\u2011driven pressure. Meanwhile, U.S. BTC spot ETFs just recorded their largest single-day inflow<\/a> in over a month. This divergence could play a decisive role in shaping Bitcoin\u2019s trajectory as 2026 approaches.<\/span><\/p>\n

Bitcoins Forced, not panic selling, could shape BTC\u2019s 2026 move<\/b><\/h2>\n

Bitcoin\u2019s outlook for 2026 is being defined by a subtle shift in supply dynamics.<\/span><\/p>\n

As macro volatility picks up and renewed China mining pressure builds, different BTC cohorts are being pushed into selling just to manage losses. Miners are a clear part of this, with miner net position change flipping red.<\/span><\/p>\n

In other words, with hashrate down around 8%, miner margins are getting squeezed<\/a>, making continued selling more likely. That keeps Bitcoin\u2019s short-term momentum capped, limiting its Q4 tailwind.<\/span><\/p>\n

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Source: Glassnode<\/p>\n<\/div>\n

That said, this looks more like forced selling than panic.\u00a0<\/span><\/p>\n

BTC ETFs just pulled in $457 million in a single day, showing institutions are still buying. Big players haven\u2019t tapped out yet<\/a>, <\/span>which makes the pullback feel more like a healthy reset than a fear-driven capitulation.<\/span><\/p>\n

Notably, this divergence could define Bitcoin\u2019s setup heading into 2026.<\/span><\/p>\n

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Bitcoins Final Thoughts<\/strong><\/h2>\n