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

According to Checkonchain data, Bitcoin's current market price of approximately $70,000 is below its average production cost of about $87,000, a difference of around 20%. Historically, Bitcoin prices falling below production costs have been a characteristic of bear markets. In the 2019 and 2022 bear markets, 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 Bitcoin network computing power, has dropped by about 20% since peaking at 1.1 ZH/s in October, now recovering 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)