The entire economy is facing a whirlwind of rising geopolitical tensions amid the West Asian crisis, and the Bitcoin (BTC) mining industry is no exception.
According to a report published by Hashrate Index, the global hash rate dropped from 1,066 EH/s in the first quarter of 2026 to 1,004 EH/s in the second quarter of 2026.
This 5.8% decline in quarter-to-quarter (QoQ) analysis indicates a continuing downward cycle; This is a strong bearish signal for the Bitcoin ecosystem. Additionally, it indicates that miners are shutting down or using less mining power to secure the network.
How did Bitcoin’s price play a big role?
Zooming out, it’s notable that this is not just a factor of global tensions, but also Bitcoin’s choppy price action. For context, the leading cryptocurrency is down 50% from its all-time high in October.
This pushed hash prices to all-time lows.
However, nationwide market share distribution in the second quarter of 2026 Bitcoin mining paints an even clearer picture. It shows how changing geopolitical dynamics affect the global hash rate.
report It suggests that the top three countries have around 65% of the global hashrate. This includes the US, which has 37.4% with a global hashrate of 375 EH/s.
It is followed by Russia with 16.9% with a global hashrate of 170 EH/s, followed by China with 12.1% with a global hashrate of 120 EH/s.
Significant declines
More importantly, China saw a 1.35% decline in December 2025 due to enforcement actions in Xinjiang. For context, this enforcement action resulted in the closure of approximately 400,000 mining platforms.
Iran ranked second on the list, facing a quarterly decline of 0.6% due to ongoing geopolitical turmoil in the region. As expected, the US ranked third, with a slight quarterly decline of 0.13%, despite an annual increase of over 3%.
Bitcoin miner difficulty and profit analysis
Meanwhile, the Bitcoin miner difficulty chart moving sideways showed a slight recovery or stabilization of mining activity compared to the decline seen in March.
This reinforces the idea of greater network security and increased confidence in Bitcoin’s long-term value.
Additionally, the Bitcoin Miner profit or loss chart shows that the majority of miners receive fair wages and make average profits. However, with the start of the second quarter ‘grossly underpaid’ lines have grown significantly, meaning profits are now constrained.
Final Summary
- Bitcoin’s 50% drop from its all-time high in October is one of the factors behind the decline in global hashrate.
- The profit/loss statement for Bitcoin miners shows that most miners are currently underpaid, resulting in reduced profits.
