Bitcoin is trading 20% ​​below production cost as miners’ profits fall to a 14-month low.

Bitcoin fell to around 70,000 Dollars on February 5 – about 20% below the estimated price of $87,000 to produce one coin – as hashrates drop, streams decrease and the main market sinks, causing the profit of miners to fall to a 14-month low.

show More information CryptoQuant The average amount of hashes on the internet is around 970 exahashes per second, down 12% from a peak of around 1.1 exahashes per second in October – the biggest drop since China banned mining in 2021.

This decline began at the beginning of October, when … Bitcoin They sell for around $126,000. The largest futures event that ever started trading continued without finding a bottom. CryptoQuant’s Bull Score has dropped to zero.

The mining fee decreases if the block time exceeds the target

The economic crisis for miners has increased significantly in recent weeks. Daily income decreased For Bitcoin mining From about $45 million to $28 million for the year at the end of January, driven by lower prices and a winter storm in the United States that forced major operators to reduce production.

The production of the two largest publicly traded miners dropped from an average of 77 bitcoins per day to 28 at the same time, according to CryptoQuant.

The average blocking time has increased About 11.6 minuteswhich is above the 10-minute target set by the protocol, indicating how much hash power has stopped working.

The Miner P&L Sustainability Index fell to 21, confirming that the coin is unable to cover the cost of the internet’s main sector. Older models, including the Antminer S19 XP+ and MicroBT M60S, are no longer profitable in today’s mining crisis with fixed electricity costs of $0.08 per kilowatt-hour.

Even the new S21 devices are approaching the closing price range of $69,000-$74,000, as previously reported.

The change in pressure is expected to cause the decline to decrease significantly from 2021

It is expected The next change in Bitcoin’s difficulty, expected on February 8, will reduce the mining problem by about 14% to about 121 trillion, down from the current level of 141.67 trillion.

If confirmed, it would be a major negative change from mid-2021 and would improve the cost per unit of computing power for miners still connected to the network.

Van Eck argued, an investment company in the Digital assetsthat the persistent decline in interest rates has been a sign of change. The company’s data shows that the negative hash rate growth at 90 days was followed by a positive return of Bitcoin at 180 days 77% of the time, with an average profit of 72%.

Van Eck researchers Matt Siegel and Patrick Busch wrote in a research note It was released in December: “The longer the hash rate continues, the better future returns tend to occur more frequently and more.”

Changes in artificial intelligence and the decline of institutions add to the uncertainty

Part of the hashrate drop may be structural rather than cyclical. As it happened We wrote about it earlier this yearSome miners, including IREN and Core Scientific, have shifted their focus to artificial intelligence and high-performance computing, which offer more stable profits than block payments in the current sprawling environment.

Van Eck says that up to 10% of Bitcoin’s hash value can be converted into artificial intelligence.

At the same time, institutional orders were shown with Bitcoin coins in the US. Research data shows that ETFs became net sellers in early 2026, selling about 10,600 BTC since the start of the year compared to buying about 46,000 BTC during the same period in 2025.

A note Bitcoin is trading 20% ​​below production cost as miners’ profits fall to a 14-month low. appeared for the first time Cryptonews Arabic.

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