Key Insights
- •China has become the third-largest Bitcoin mining country, a significant development in Bitcoin mining news.
- •Bitcoin mining is experiencing a resurgence, partly driven by the AI-driven data center boom.
- •Canaan, a Bitcoin mining rig manufacturer, has reported a substantial increase in sales of mining rigs within China.
- •The price of Bitcoin has shown a rebound in recent days, influenced by expectations of Federal Reserve rate cuts.
China's Silent Resurgence in Bitcoin Mining
Despite a ban implemented by the Chinese government in 2021, Bitcoin mining operations are quietly expanding in China. Both individual and corporate miners are actively engaged in mining Bitcoin and other cryptocurrencies, benefiting from the current AI-driven data center boom. This development is particularly noteworthy given that China once dominated the global Bitcoin mining landscape, including the sales of mining equipment. The recent resurgence suggests China's continued focus on BTC mining activities.
China's Comeback in Bitcoin Mining
According to a Reuters report from November 24, China has re-established itself as the third-largest player in Bitcoin mining, contributing approximately 14% of the global hashrate as of last month. Miners have reappeared in regions known for low-cost energy and surplus power, such as Xinjiang and Sichuan. Data from Hashrate Index, which monitors Bitcoin mining activities, indicates a growing market share for China. It is important to recall that China officially banned all cryptocurrency trading and mining in 2021, citing concerns about financial stability and energy conservation. Currently, private miners are leveraging surplus electricity for crypto mining, and new mining projects are being developed in areas with affordable electricity costs.
Canaan's Role in the Bitcoin Mining Resurgence
The Bitcoin mining rig maker, Canaan, has seen a significant rise in domestic sales within China. The company reported that China's contribution to its sales increased by more than 50% during the second quarter of 2025. Canaan recently introduced its next-generation Avalon A16 series Bitcoin mining machine, which offers a computing power of 300 TH/s with an energy efficiency of 12.8 J/TH, combining high performance with industry-leading energy efficiency. This rebound in Bitcoin mining in China has coincided with Bitcoin's price reaching record highs in October, partly due to a global trend of crypto-friendly regulations and an increase in Bitcoin treasury companies. Despite these developments, China has not officially lifted its curbs on Bitcoin mining and trading. While Hong Kong emerged as a preferred hub for Chinese miners post-ban, mining activity appears to be returning to mainland China, especially with the ongoing AI boom.
In related news, Japan has also witnessed a notable increase in Bitcoin mining amid growing crypto adoption. Canaan previously secured a 4.5 MW order from a Japan-based utility, indicating its global reach and the expanding mining sector.
Potential for Bitcoin Price Rebound
The resurgence of Bitcoin mining in China could provide demand and price support for the world's largest cryptocurrency asset. CryptoQuant estimates that China currently accounts for 15%-20% of the global Bitcoin mining capacity. As of this writing, Bitcoin's price has remained above $86,109 over the past 24 hours, with a low of $85,672 and a high of $88,038. Trading volume has also seen a substantial increase of 56% in the last 24 hours, signaling significant trader interest, further bolstered by rising hopes for Federal Reserve rate cuts.
Analyst Michael van de Poppe anticipates that Bitcoin's price will close the CME gap at $85.5K and subsequently recover to the 20-day moving average, which stands at $95K. However, failure to reclaim this level could lead to a deeper correction, with key support levels identified at $75,740, $56,160, and $52,820.