The entire economy faces the whirlwind of increasing geopolitical tensions amid the West Asia crisis, and Bitcoin’s [BTC] mining sector is no exception.
According to a report published by Hashrate Index, the global hashrate in Q2 2026 has fallen to 1,004 EH/s from a high of 1,066 EH/s in Q1 2026.
This 5.8% decline in quarter-over-quarter (QoQ) analysis hints at an ongoing down cycle—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 isn’t just a factor of global tensions but also Bitcoin’s choppy price action. For context, the leading cryptocurrency is down 50% from its October all-time high.
This has pushed hash prices to their all-time lows.
That said, the country-wide distribution of market share in Q2 2026 for Bitcoin mining further draws a clearer picture. It shows how changing geopolitical dynamics are impacting global hashrate.
The report suggests that the top three countries command roughly 65% of the global hashrate. This includes the United States, with a global hashrate of 375 EH/s, holding 37.4%.
Following behind is Russia, accounting for a 170 EH/s global hashrate, holding 16.9%, and then there’s China, covering 12.1% with a 120 EH/s global hashrate.
Notable declines
Importantly, China saw a 1.35% decline because of its December 2025 Xinjiang enforcement actions. For context, this enforcement action resulted in roughly 400,000 mining rigs being shut down.
Iran ranked second on the list, facing a 0.6% QoQ decline due to the ongoing geopolitical turmoil in the region. As expected, the U.S. was third with a slight decline of 0.13% QoQ despite an over 3% year-over-year (YoY) increase.
Bitcoin miner difficulty and profit analysis
In the meantime, the Bitcoin miner difficulty chart moving sideways indicated a slight recovery or stabilized mining activity as compared to a drop seen in March.
This reinforces the idea that higher network security and bullish confidence in Bitcoin’s long-term value.
Additionally, the Bitcoin Miner profit or loss chart suggests that the majority of miners are fairly paid and are earning average profits. However, as Q2 started, the ‘extremely underpaid’ lines grew significantly, meaning that profits are squeezed at the moment.
Final Summary
- Bitcoin’s price drop of 50% from its October all-time high is one of the factors behind the drop in global hashrate.
- The Bitcoin miner profit/loss chart shows that most miners are currently underpaid, resulting in squeezed profits.
