China’s mining restrictions and their impact on Bitcoin’s 2026 prospects

China’s ongoing mining crackdown is forcing miners to sell their Bitcoin positions, leading to an approximate 8% drop in hashrate. This decline is temporarily weakening Bitcoin’s network security, compelling long-term holders to liquidate their assets.

While miners are under pressure, institutional interest in Bitcoin remains strong, evidenced by significant inflows to BTC ETFs. This divergence between forced selling and institutional buying may influence Bitcoin’s trajectory as 2026 approaches.