According to Checkonchain's difficulty-based cost model, the average production cost for Bitcoin miners is approximately $88,000, while the current market price is around $69,200, resulting in an average loss of about 21%. Bitcoin previously fell from $126,000 to below $70,000, and the recent rise in oil prices above $100 has further increased electricity costs. The actual closure of the Strait of Hormuz has tightened global oil and gas supply expectations, exacerbating cost pressures on miners. At the network level, mining difficulty decreased by 7.76% to 133.79 trillion in the latest adjustment, one of the largest drops this year, down about 10% from the beginning of the year. Hashrate fluctuates between approximately 900 and 950 ables per second, below the 1 able milestone expected in 2025, and the average block time has increased to approximately 12 minutes and 36 seconds. The hash rate hovers around $33 per PH/s, close to the break-even point for most miners. Currently, approximately 43% of the Bitcoin supply is operating at a loss. When mining revenue cannot cover operating costs, miners typically sell Bitcoin to cover expenses, increasing selling pressure in the market. Several publicly listed mining companies, including Marathon Digital and Cipher Mining, are shifting resources to AI and high-performance computing businesses. Bitdeer has reduced its Bitcoin holdings to zero, and Core Scientific plans to sell a large amount of its inventory to fund AI-related infrastructure construction. The next difficulty adjustment is expected in early April, and if the current situation persists, it may be further reduced.
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