Bitcoin is down today for a very simple reason, and almost nobody is explaining it properly.
It’s coming straight from China, and the timing matters. That’s right, china’s crashing bitcoin, AGAIN. Here’s what’s happening: China just tightened regulations on domestic Bitcoin mining again. In Xinjiang alone, a huge chunk of mining operations were shut down in December. Roughly 400,000 miners went offline in a very short window. You can already see it in the data:
Network hashrate is down around 8%.
When miners are forced offline like this, a few things happen fast:
That creates real sell pressure, not the other way around. This isn’t a long-term bearish signal for Bitcoin. It’s a temporary supply shock caused by a dumb policy, not demand.
We’ve seen this movie before.
China cracks down → miners shut off → hashrate dips → price wobbles → network adjusts → Bitcoin moves on.
We should expect more pain in the short term, but long term this doesn’t even matter!
Sincerely,
Pele23
