PANews February 5 News, according to Coindesk, Checkonchain data shows that Bitcoin’s current price is approximately $70,000, which is below its estimated average production cost of about $87,000, a gap of around 20%. Historically, Bitcoin prices remaining below production costs is often a characteristic of a bear market, a situation that has occurred during the market cycles of 2019 and 2022.
After reaching a historical peak of approximately 1.1 ZH/s in network hash rate last October, the hash rate dropped by about 20% due to the shutdown of less efficient mining rigs, but has recently rebounded to 913 EH/s, showing initial signs of stabilization. However, at the current price, many miners are still operating at a loss. To sustain daily operations, cover energy costs, and repay debts, miners continue to sell their Bitcoin reserves. This “miner capitulation” phenomenon highlights that the industry still faces ongoing financial pressures.
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