Bitcoin (BTC) Price Falls Below Average Mining Costs… Rising Pressure on Miners’ Profitability

An analysis suggests that as the price of Bitcoin (BTC) drops below the average cost of mining, profitability pressure on mining companies could intensify.

Cryptocurrency-focused outlet Decrypt, citing on-chain analytics firm CryptoQuant, reported that BTC has recently fallen about 50% from its peak in October last year, increasing the burden on miners.

CryptoQuant’s chief analyst Julio Moreno said, “The average cost to mine one bitcoin is estimated at roughly $70,000–$80,000,” adding, “This is above the current bitcoin price.”

The outlet added that, when factoring in electricity costs, capital expenditures on equipment, and maintenance and operating expenses, the average mining cost for major bitcoin miners listed on U.S. stock exchanges is also estimated at around $60,000–$80,000.

Accordingly, if the bitcoin price remains at current levels for an extended period, some mining companies may respond to deteriorating profitability by cutting output, halting operations, or selling assets.

Decrypt said, “If prices persist below mining costs, restructuring pressure across the mining sector could mount,” adding that “whether bitcoin prices recover and upcoming difficulty adjustments will be key variables for the mining industry.”