Miners are being squeezed as bitcoin’s $70,000 price fails to cover $87,000 production costs
CoinDesk
Bitcoin's price near $70,000 is below the estimated $87,000 production cost, squeezing miners and forcing capitulation.Summary
Bitcoin is currently trading about 20% below its estimated average production cost of $87,000, with the spot price hovering near $70,000, a situation historically typical of a bear market. This cost estimate is derived using network difficulty as a proxy for the industry's all-in cost structure. The pressure is forcing miners to sell existing bitcoin holdings to cover operational expenses, energy costs, and debt service, indicating ongoing miner capitulation. While the network hashrate previously declined by about 20% from its peak as less efficient miners went offline, it has recently shown some stabilization, though many miners remain unprofitable at current prices.
(Source：CoinDesk)