Bitcoin miners are currently in a very difficult situation, and it needs to be stated openly. While the market price hovers around $73,000, the average production cost has reached $88,000. There is an approximate loss of $15,000 per each coin produced.

What caused this? The main reason is the skyrocketing energy prices. Tensions in the Middle East, oil prices exceeding $100, and the closure of the Strait of Hormuz have significantly increased electricity costs. About 8-10% of the global hash rate operates in energy-sensitive regions. Trump’s threats against Iran’s power plants also complicated the situation.

The network felt this. Last week, difficulty dropped by 7.76%, falling to 133.79 trillion. This is the second-largest negative adjustment of the year. The hash rate fell to 920 EH/s, well below the 2025 record of 1 zettahash. Block times also increased to 12 minutes and 36 seconds.

What are miners doing in this situation? Simply: they are selling Bitcoin. They are releasing their coins into the market to finance operations. Already publicly traded miners like Marathon Digital and Cipher Mining are diversifying into artificial intelligence and high-performance computing sectors. Mining is no longer a stable source of income.

From a market structure perspective, the situation is even more interesting. Spot Bitcoin ETFs and a few institutional buyers are currently providing most of the purchases. Whale activity has decreased. Leverage positions are putting pressure on the market. About 43% of the total supply is held in loss.

What’s the conclusion? If Bitcoin stays below $88,000, miner outflows will continue, and difficulty will decrease further. The network will self-correct, but this process will harm both miners and the spot market. The difficulty adjustment expected at the beginning of April is likely to go even lower. Electricity signals are currently a red flag for miners.