Bitcoin miners find themselves in a difficult financial situation due to the sharp decline in the price of the first cryptocurrency. The average cost of mining a bitcoin currently stands at about $87,000 per coin, while the market price of the asset has fallen below $70,000. This gap between production cost and market value has already led to significant losses among miners.
This is reported by Business • Media
Financial Pressure on Miners and Market Trends
According to analysts, bitcoin is trading approximately 20% below the estimated production cost. Such a situation has historically characterized bear market phases, when the asset’s price remained below the cost of mining for an extended period. The assessment of production costs is based on network difficulty, which serves as an indicator of the overall cost structure of the industry.
The calculation model takes into account the relationship between network difficulty and bitcoin’s market capitalization, allowing for the determination of average costs for miners. In previous years, particularly in 2019 and 2022, the cryptocurrency also traded below production costs before gradually recovering in price.
Decline in Hashrate and Miners’ Capitulation
In October 2025, the bitcoin network’s hashrate reached a record 1.1 ZH/s, but subsequently decreased by about 20%. This was a result of the shutdown of less efficient miners who could not withstand the financial pressure. As of today, the hashrate is at approximately 880.55 EH/s.
As mining revenues do not cover operational costs, miners are forced to sell their bitcoin reserves to maintain operations, pay for electricity, and settle debts. This “miners’ capitulation” is indicative of a prolonged crisis in the industry.
The company also warned of the risk of capitulation among small miners, especially if the asset’s price moves below $85,000. The report also emphasized that the industry is facing the most challenging environment since the inception of the first cryptocurrency, with equipment payback periods extending beyond the next halving.
According to BRN data for December 2025, the industry is experiencing the worst profitability metrics in its history. The payback period for mining has exceeded 1000 days, and daily income has fallen below average costs.
Additional pressure on the industry has been created by weather conditions. In January 2026, extreme cold in the U.S. led to mass shutdowns of mining farms: over 35% of bitcoin’s hashrate was temporarily turned off. In particular, the hashrate of the Foundry USA pool fell by nearly 200 EH/s, which is about 60% of previous levels.
Estimated Average Bitcoin Mining Cost. Source: Checkonchain.