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Bitcoin Falls Below Estimated Mining Costs, Squeezing Miners as Difficulty Cut Nears

Over $2 billion in forced liquidations is intensifying pressure on miners.

Overview

  • Bitcoin traded around $62,000–$63,000 on Thursday, roughly 50% below its October peak and about 20% under Checkonchain’s ~$86,000 difficulty‑regression cost gauge.
  • The selloff triggered more than $2 billion in crypto derivatives liquidations in 24 hours, including $1.11 billion tied to Bitcoin and a $12 million position on Binance.
  • Researchers caution that the difficulty‑regression figure is an indirect proxy, with CryptoQuant’s Julio Moreno estimating typical all‑in costs closer to $70,000–$80,000.
  • Public miners report widely varying per‑coin costs, from about $39,000 at Iris Energy to over $106,000 at NYDIG, with a BlocksBridge median near $60,000 based on Q3 data.
  • Miner strain has led to reserve sales and curtailments, with network hashrate down from October highs and a roughly 13% difficulty drop expected Feb. 7, per Coinwarz.