Bitcoin is seeing short-term downside, mainly due to renewed mining restrictions in China.
Authorities shut down a large number of mining operations, especially in Xinjiang, forcing many miners offline in a short time. As a result, network hashrate dropped around 8%.
When miners are pushed offline:
Revenue stops
Cash is needed to relocate or cover costs
Some $BTC BTC gets sold, creating temporary sell pressure
This is a supply-side shock, not a demand problem.
We’ve seen this before:
China crackdowns cause short-term volatility, the network adjusts, and Bitcoin moves on.
Short-term pain is possible, but long-term fundamentals remain strong.
