On February 5th, the price of Bitcoin hovered above $70,000, while the current average production cost of Bitcoin is approximately $87,000, a difference of about 20%, a typical characteristic of a bear market. Previously, during the bear markets of 2019 and 2022, Bitcoin's market price fell below the average production cost, but both times it eventually recovered.
The Bitcoin network hashrate peaked at approximately 1100 EH/s last October and has since declined by about 20%, currently rebounding to 913 EH/s and beginning to stabilize. At current prices, many miners are still unable to turn a profit. Because revenue falls below operating costs, miners are forced to continue selling Bitcoin to maintain daily operations, pay energy bills, and repay debts; however, this situation is unlikely to last much longer.
