Українська
Русский
English
The cost of mining 1 BTC has risen to $88,000! What does it mean?
Bitcoin ($BTC) mining profitability has significantly declined due to rising costs and geopolitical tensions. According to data from the analytics platform Checkonchain, the average cost of producing one bitcoin had risen to approximately $88,000 by mid-March.
At the same time, the price of bitcoin is trading around $69,000. This means that miners are losing an average of about $19,000 per mined $BTC, operating with a negative margin of approximately 21%.
The pressure on prices is driven not only by declining prices but also by rising energy costs. Geopolitical tensions in the Middle East, particularly events surrounding Iran, have pushed oil prices above $100, leading to increased electricity costs. Given that approximately 8–10% of the global hash rate depends on energy markets in this region, rising energy prices directly affect mining operations. Significant disruptions in the Strait of Hormuz for commercial shipping and sharp statements by U.S. President Donald Trump toward Iran have further intensified market uncertainty.
Network data also confirms this pressure. Bitcoin mining difficulty decreased by 7.76% in the latest adjustment, dropping to 133.79 trillion, marking the second-largest decline in 2026. Compared to the beginning of the year, difficulty is approximately 10% lower, remaining significantly below the peak of 155 trillion reached in November 2025. Over the same period, the hash rate dropped to approximately 920 EH/s, and the average block time increased to 12 minutes and 36 seconds, indicating a slowdown in network performance.
The “hashprice” metric, which measures miner revenue, is also fluctuating near critical levels. According to Luxor, hashprice stands at about $33.30, which is close to the breakeven point for many miners. Its proximity to February lows of around $28 highlights the severity of the profitability crisis in the sector.
Under these conditions, miners are forced to sell their bitcoin to sustain operations. This selling pressure creates additional downward pressure on the market, where 43% of the supply is already underwater, and large investors are selling during price increases. Thus, a breakdown in mining economics is not only an industry issue but also a factor that directly affects market structure.
On the other hand, publicly traded mining companies are undergoing a strategic transformation in response to these challenging conditions. Companies such as Marathon Digital and Cipher Mining are increasing investments in data centers, focusing on artificial intelligence and high-performance computing (HPC) to diversify revenue streams. These sectors offer more predictable income compared to bitcoin mining.
The next difficulty adjustment, expected in early April, is also likely to be downward. As long as the bitcoin price remains below production cost, miners may continue to leave the network, and difficulty levels may keep declining. Although the Bitcoin network is self-balancing in the long term, this transition period—when costs exceed revenues—is expected to exert sustained pressure on both miners and the market.
See also: "Bitcoin hash rate is declining due to rising energy prices"
