Bitcoin Hashprice Drops Sharply as Mining Difficulty Reaches Record Levels — Is a Crisis on the Horizon?

Bitcoin Mining Profitability Decline: Bitcoin hashprice has dropped to an all-time low of $34.49 per PH/s, while mining difficulty reached a record high of 155 trillion, severely impacting miner earnings and operational viability.

Operational Challenges for Miners: The combination of rising mining difficulty and falling hashprice has led to increased operational costs, particularly affecting smaller miners, and raising concerns about potential exits from the market.

Market Conditions and Miner Stress: Current mining profitability is at its lowest since 2023, with miners needing higher BTC prices to break even, as block rewards have decreased and operational costs average $112,000.

Potential Network Vulnerability: If low hashprice and high difficulty persist, the Bitcoin network may face structural shifts with fewer active miners, raising questions about its resilience and the ability of miners to sustain operations under current conditions.