Bitcoin falls below $70,000 as miners come under pressure

Bitcoin miners face mounting losses with prices under $70,000 against production costs near $87,000. Hashrate falls and revenues hit record lows amid capitulation, but a sharp difficulty drop next week may provide relief for survivors in the sector.

Bitcoin miners entered 2026 facing their most severe test since the 2024 halving. The cryptocurrency price slipped below $70,000 on February 5 for the first time since President Donald Trump’s reelection in November 2024. This level sits well under average production costs, reported around $87,000 per bitcoin for many operations.

The decline erased post election gains that had pushed bitcoin above $100,000 late last year. Miners now operate at a loss, forcing sales of bitcoin reserves to cover energy bills and debt payments. Network data shows block production slowed to 11.53 minutes on average, well above the 10 minute target.​

Price Drop Hits Profit Margins

Bitcoin traded as low as $69,821 during the session, down 20 percent from recent highs. This marks the weakest point in over a year, driven by outflows from investment products and broader market caution.

Public data from CoinShares places average cash mining costs for listed firms at $74,600 per bitcoin in late 2025, with full costs including depreciation reaching $137,800. At current prices, even efficient operators struggle to break even after power and maintenance expenses.​

Energy remains the largest outlay, often $40,000 to $80,000 per bitcoin depending on location and hardware. U.S. based miners, hit by a recent cold storm, saw temporary shutdowns that added to operational strain.

Hashrate Signals Widespread Shutdowns

Network hashrate peaked near 1.1 zettahashes per second last October but has since retreated. As of February 4, it stood at 1,000 exahashes per second, up slightly from 930 EH/s the prior day but down sharply from December levels.

Luxor data pointed to an 11 percent weekly drop earlier this month, reflecting shutdowns by high cost miners. The figure hovered around 863 EH/s in late January before partial recovery, yet remains 20 percent below monthly peaks.

This contraction boosts security risks in the short term but underscores natural selection in the industry. Less efficient rigs, often older models from before the latest efficiency gains, power down first. Remaining fleets use machines consuming under 15 joules per terahash.

Revenues Plunge to Record Lows

Daily mining revenue fell to $28.73 million on January 24, the lowest in recent memory. It recovered to $39.61 million by January 31 but stays below late December averages above $40 million.​

Hashprice, revenue per petahash per day, hit below $32 on February 5, an all time low. This metric captures the squeeze from low bitcoin prices and stubborn difficulty levels.

Miners earn from block rewards of 3.125 bitcoin post 2024 halving, plus fees. With prices down, each reward yields far less in dollars. Forced selling by operators amplifies downward pressure on spot markets.

Difficulty Adjustment Offers Breathing Room

The next difficulty retarget arrives February 7 at block 935,424, roughly two days from now. Projections call for a 13.29 percent drop from 141.67 trillion to 122.83 trillion, the largest since China’s 2021 crackdown.

Block times stretched due to offline capacity, triggering the automatic adjustment every 2,016 blocks. This eases computational demands, potentially lifting hashprice by 15 percent or more for active miners.​

Past adjustments during downturns aided recovery. Yet analysts caution that sustained low prices could force even low cost players to curtail output. The change provides temporary aid but does not address underlying economics.