I just saw that miners are again under serious pressure. Bitcoin is still stuck in the 73K-74K range, even though the production cost report shows the average cost to mine one BTC is around $87,000. So basically, miners are losing 15-20% per coin they produce. This kind of situation has happened before in 2019 and 2022, and historically, it always signals a pretty serious bearish trend.

What’s interesting is that the hashrate briefly dropped 20% from its October peak of 1.1 ZH/s when inefficient miners were forced to shut down. But recently, it recovered slightly to 913 EH/s, indicating some miners are still holding on despite the tight conditions. The latest production cost report also highlights that many miners are still unprofitable at current prices, so they are forced to sell their holdings to cover operational costs and pay off debts.

The question is, just like in previous cycles, how long until the price recovers back to the production cost level? This production cost report usually acts as a leading indicator that the bottom is near. If the pattern from 2019 and 2022 repeats, this could be an accumulation phase for those with guts. But yeah, the pressure in the mining sector is still very real right now.