Key Takeaways
How are network conditions affecting Bitcoin miners?
Record-high mining difficulty, combined with a hashprice at an all-time low, is squeezing the entire Bitcoin mining community.
How low is miner profitability right now?
Mining Profitability has fallen to just 0.0334 USD/day per 1 TH/s, marking the lowest level since 2023.
The longer the market stays in risk-off mode, the higher capitulation tends to go. It’s been over six weeks since the October crash sparked a market-wide sell-off, wiping out $1 trillion in total crypto market cap.
Given that setup, a spike in capitulation was inevitable. STH NUPL dropped to extreme lows, ETFs kept bleeding capital, and LTHs sold chunks of their holdings. Yet, the market still hasn’t managed a meaningful recovery.
On the charts, Bitcoin [BTC] failed to flip $95k or $90k into support, making a bottom at $86k premature. The tricky part? Broader market weakness now looks like it’s starting to weigh on BTC’s core fundamentals.
Record mining difficulty meets historic low hashprice
The miner community is a core pillar of Bitcoin’s fundamentals.
On the 3rd of November, mining difficulty hit a record 155 trillion, making it harder than ever to earn Bitcoin through mining.
While this strengthens the network, hashprice has simultaneously dropped to an all-time low.
According to the Hashprice Index, Bitcoin’s hashprice fell to an all-time low of $34.49 per PH/s. This represents a decline of more than 50% in just a few weeks and marks the lowest level in BTC’s history.
Source: Hashprice Index
To put it in perspective, a miner with 1 PH/s of mining power would earn $34.49 per day before costs. This directly hits miner profitability, which is a key indicator of Bitcoin’s core fundamentals.
Combine that with record-high mining difficulty, and the network is becoming increasingly competitive for smaller miners. Higher difficulty means higher costs, while a low hashprice means lower returns.
Given this context, is it still a bullish signal for the network’s security?
With BTC down roughly 31% from its $126k all-time high, the question is now is — can large miners maintain their positions under these conditions, or will falling profitability start to impact the Bitcoin network as a “whole”?
Mining profits at multi-year lows as BTC slides
Profitability is key for any miner to stay in the game.
After the halving, the block reward dropped to 3.125 BTC. Put simply, miners are earning fewer coins per block, so they need higher BTC prices to stay profitable, especially with record-high difficulty pushing costs up.
At the same time, Bitcoin Mining Profitability has dropped to 0.0334 USD/day per 1 TH/s. That means a miner with 1 TH/s is earning 3 cents per day. This is the lowest the metric has been since 2023.
Source: Bitinfochart
Simply put, with hashprice falling, mining difficulty at record highs, and BTC price declining, miner profitability has taken a hit, pushing the metric to a multi-year low.
Meanwhile, the cost of mining has jumped to $112k.
Technically, that’s about 1.3× higher than Bitcoin’s current value.
As a result, the squeeze isn’t just hitting smaller miners. Instead, capitulation is starting to impact the entire community.
If BTC drops any further, we could see large-scale miner exits, leaving the sector more vulnerable than ever.
