The cost of mining Bitcoin has now surpassed $70,000, far exceeding market prices and putting significant pressure on miner profits following the halving.
Increased whale trading indicates that institutional miners may be selling OTC to cope with rising costs.
Bitcoin [BTC] mining is becoming extremely expensive, challenging the endurance of the entire cryptocurrency industry.
The production cost of one Bitcoin has exceeded $70,000 — a figure that is currently higher than the market trading price of BTC.
This increase stems from soaring energy costs, deep block reward reductions after the 2024 halving, squeezing miner profit margins. Operational pressure has become more severe than ever.
When profitability is directly threatened, the big question arises: Does the mining industry have enough resilience, or are we about to witness a large-scale capitulation and industry consolidation?
Miners are paying record high prices, with record low profits
MacroMicro data shows that the average cost to mine one Bitcoin has surpassed $70,000, even as the price of BTC continues to fluctuate around this threshold. This is the largest gap between production costs and selling prices since the halving in April.
Source: MicroMacro
The chart shows that while the price of Bitcoin remains quite stable, mining costs have skyrocketed since the halving, causing net profits to fall close to zero.
For many miners, the current situation is simply 'break even or quit.' If Bitcoin does not rise sharply in the short term, smaller units will certainly face liquidity crises.
Hashrate remains high, reserves are low
Source: CryptoQuant
The hashrate of the Bitcoin network remains high, despite shrinking miner profits. This forces mining units to upgrade machinery and optimize processes to maintain competitiveness.
Source: CryptoQuant
While the mining machines are working tirelessly, the Bitcoin reserves of miners have significantly decreased.
According to data from CryptoQuant, the total BTC reserves (measured in USD) of miners have plummeted since March, despite Bitcoin's steady price growth.
This implies that miners are forced to sell some Bitcoin to cover the increasingly large operational costs.
Whale trading reveals off-exchange activity
Data from Santiment shows that Bitcoin transactions over $1 million have continuously maintained high levels since early April.
This trend, especially at a time when miner reserves are declining, indicates that BTC may be sold through OTC desks rather than pushed onto open exchanges.
Source: Santiment
This moment coincides with a period of skyrocketing operational costs, proving that institutional miners are quietly liquidating to avoid a sharp market downturn.
Such off-market transactions do not cause immediate fluctuations in the spot market but reflect a discreet and intelligent capital rotation in the cryptocurrency mining sector.
Source: https://tintucbitcoin.com/dao-bitcoin-lo-nang-vuot-70-000-usd/
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