Bitcoin mining cost now averages over $100,000, putting financial pressure on operations despite BTC holding above the same level.
Hash Ribbons indicator has triggered a new signal as mining activity slows and miner stress increases across the Bitcoin network.
Miners are turning off inefficient rigs to manage expenses, avoiding Bitcoin sell-offs while reducing total hash rate output.
For the first time in Bitcoin’s history, the average cost of production has crossed the $100,000 mark. This comes at a time when Bitcoin is maintaining levels slightly above that figure, tightening margins for miners.
Mining Cost Hits All-Time High
The rising cost of energy and operation is now piling pressure on the business activities of bitcoin mining operations. Based on industry analysis, it has been revealed that the cost of production per bitcoin has climbed over the $100,000 mark. This marks a symbolic and financial turning point in the mining industry.
As reported by Darkfost on X, no major players have addressed this development publicly. However, the sharp increase in cost aligns with recent stress signals from several mining indicators. With Bitcoin prices hovering near the cost line, profitability has become challenging for lower-efficiency operations.
Hash Ribbons Flashing New Signals
The Hash Ribbons indicator, often used to analyze miner behavior, has triggered a fresh signal. According to Darkfost, another Hash Ribbons alert appeared today. This tool detects miner capitulation periods when the hash rate declines due to shutoffs.
https://twitter.com/Darkfost_Coc/status/1938309069548257728
Instead of liquidating Bitcoin holdings, miners are reportedly opting to power down inefficient machines. This trend is contributing to a visible drop in the network hash rate. The move indicates a preference to preserve long-term Bitcoin positions rather than realize losses under current market conditions.
Historical patterns suggest that Hash Ribbons often respond to miner stress and production adjustments. With the average cost of mining rising and profits narrowing, the new signal may reflect a temporary industry reset.
Miners Adjust Strategy to Protect BTC Holdings
While previous downturns saw miners selling Bitcoin to manage cash flow, current behavior seems different. Reports suggest miners are selectively shutting down their least profitable equipment to weather the current cost structure.
The hash rate continues to fall, suggesting that this adjustment strategy is well underway. Bitcoin’s price stability above $100,000 gives miners some room, but high production costs are clearly reshaping decisions. Holding reserves instead of selling appears to be the preferred approach in this phase.
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