65% of Global Bitcoin Hashrate Concentrated in China. Half of the country’s hash rate is produced in just one place, the autonomous Xinjiang region, which makes up 35.76% of the global total. Can bitcoin be banned there and, if so, will it effect the crypto market?
For sure if bitcoin is banned in China and the miners quit it is going to affect the Bitcoin market. But that wouldn't mean the end for the Bitcoin ecosystem, there is just going to be a decline in price and as time goes on the remaining mining farms will be able to upgrade and catch up and things will get back to normal and that's it.
Although I don't really believe that the Chinese government will ban Bitcoin mining. They have tried to do that once but it didn't work and they left the miners to continue with their business. The only thing might be able to do is to ban the people from making use of Bitcoin and maybe miners will be affected in some ways.