Bitcoin has dropped to around $70,000, trading roughly 20% below its estimated production cost of $87,000 — a gap typically seen during bear markets. The slide, combined with falling network activity, has pushed miner profitability to a 14-month low. The Miner Profit and Loss Sustainability Index fell to 21, while daily mining revenue shrank from about $45 million to $28 million, reflecting tighter margins and weaker prices.
Hashrate has declined about 12% from its October peak, block times have slowed above 11 minutes, and many older machines are no longer profitable at standard power rates. Even newer models are nearing shutdown levels. A difficulty adjustment expected on February 8 could cut mining difficulty by roughly 14%, offering temporary relief.Historically, prolonged hashrate drops have often preceded market recoveries, suggesting the current stress could eventually set the stage for a rebound.
