The entire economy is facing the whirlwind of rising geopolitical tensions amid the West Asian crisis and that of Bitcoin [BTC] mining sector is no exception.
According to a report published by Hashrate Index, the global hashrate fell to 1,004 EH/s in the second quarter of 2026, compared to a peak of 1,066 EH/s in the first quarter of 2026.
This 5.8% decline in the quarter-over-quarter (QoQ) analysis indicates a continued downward cycle – a strong bearish signal for the Bitcoin ecosystem. Furthermore, it indicates that miners are shutting down or using less mining power to secure the network.
How did the price of Bitcoin play a major role?
Zooming out, it’s noticeable that this is not just a factor of global tensions, but also of Bitcoin’s choppy price action. For context, the leading cryptocurrency is down 50% from its all-time high in October.
This has pushed hash prices to an all-time low.
That said, the nationwide Q2 2026 market share breakdown for Bitcoin mining paints a clearer picture. It shows how changing geopolitical dynamics are affecting the global hashrate.
The report suggests that the top three countries control approximately 65% of the global hashrate. This also applies to the United States, with a global hashrate of 375 EH/s, which holds 37.4%.
This is followed by Russia, which is responsible for a global hashrate of 170 EH/s and holds 16.9%, and then there is China, which covers 12.1% with a global hashrate of 120 EH/s.
Notable declines
Importantly, China saw a decline of 1.35% as a result of the enforcement actions in Xinjiang in December 2025. For context, this enforcement action resulted in the closure of approximately 400,000 mining rigs.
Iran ranks second on the list, facing a 0.6% quarter-on-quarter decline due to ongoing geopolitical turmoil in the region. As expected, the US was in third place with a slight decline of 0.13% quarter-on-quarter, despite an increase of more than 3% year-on-year.
Difficulty and profit analysis of Bitcoin miners
Meanwhile, the sideways movement of the Bitcoin miner difficulty chart indicated a slight recovery or mining activity stabilizing compared to a decline in March.
This reinforces the idea of higher network security and greater confidence in Bitcoin’s long-term value.
Furthermore, Bitcoin Miner’s profit or loss chart suggests that the majority of miners are paid fairly and make average profits. However, as the second quarter began, ‘extremely underpaid’ lines grew significantly, meaning profits are currently under pressure.
Final summary
- Bitcoin’s 50% price drop from its all-time high in October is one of the factors behind the decline in the global hashrate.
- The profit/loss chart of Bitcoin miners shows that most miners are currently underpaid, resulting in tight profits.