Live markets: Bitcoin has traded below its mining cost for five months, squeezing miners

Bitcoin traded below its estimated mining cost for five consecutive months, leading to significant financial pressure on mining operations. Approximately 20% of Bitcoin miners are currently operating at a loss. To cover their operational expenses, publicly traded mining companies sold over 32,000 bitcoin during the first quarter of the year. This figure represents a substantial increase compared to the entirety of 2025, when miners offloaded less bitcoin. The sustained period of prices below the cost of production, which is estimated to be around $20,000 per bitcoin, forces miners to deplete their reserves or seek additional financing to remain operational. This situation could potentially lead to a consolidation within the mining industry, with less efficient or financially weaker operations being forced to cease production. The profitability of Bitcoin mining is directly tied to the cryptocurrency's market price and the efficiency of the mining hardware and energy sources used. Miners typically incur significant costs related to electricity, hardware depreciation, and facility maintenance.