According to Checkonchain data, Bitcoin's current market price of approximately $70,000 is below its average production cost of approximately $87,000, a difference of about 20%. Historically, Bitcoin prices falling below production costs are often a characteristic of bear markets. In the bear markets of 2019 and 2022, Bitcoin prices fell below production costs before gradually recovering. This production cost estimation model uses network difficulty as a proxy for the industry's overall cost structure. Currently, the hashrate, a measure of Bitcoin's network power, peaked at 1.1 ZH/s in October and then declined by about 20%, currently rebounding to 913 EH/s, showing some signs of stabilization. However, since many miners are still operating at a loss at the current price, they are continuously selling their Bitcoin holdings to cover daily operating costs, energy expenses, and debt. (CoinDesk)