Analysis: Bitcoin Miner Cost Line Breached, Selling Pressure May Become Short-Term Variable

Odaily News According to Checkonchain data, Bitcoin's current market price of approximately $70,000 is now below its average production cost of around $87,000, representing a gap of about 20%. Historically, Bitcoin prices falling below production costs have typically been a characteristic of bear markets. During the bear markets of 2019 and 2022, Bitcoin prices also dipped below production costs before gradually recovering. This production cost estimation model uses network difficulty as a proxy indicator for the industry's comprehensive cost structure. Currently, the hash rate, which measures the computing power of the Bitcoin network, has dropped by about 20% since reaching a peak of 1.1 ZH/s in October and has now rebounded to 913 EH/s, showing some signs of stabilization. However, as many miners remain unprofitable at the current price, they are continuously selling their Bitcoin holdings to cover daily operational expenses, energy costs, and debt. (CoinDesk)