BroadChain has learned that, according to Checkonchain's mining difficulty-based cost model, the current average production cost for Bitcoin miners is approximately $88,000. With the market price hovering around $69,200, this translates to an average loss margin of about 21%.
This pressure follows Bitcoin's retreat from its all-time high of $126,000 to below $70,000. Compounding the issue, a recent surge in oil prices above $100 per barrel has driven electricity costs higher for miners worldwide.
The effective closure of the Strait of Hormuz has further tightened global oil and gas supply expectations, intensifying the cost squeeze on mining operations.
On the network side, mining difficulty saw a significant drop of 7.76% to 133.79 trillion in the latest adjustment—one of the largest declines in 2026. The current difficulty level is roughly 10% lower than it was at the start of the year.
The network-wide hash rate is fluctuating between 900 and 950 EH/s, remaining below the 1 ZH/s milestone reached in 2025. The average block time has also extended to approximately 12 minutes and 36 seconds.
The hash price is currently near $33 per PH/s, hovering close to the breakeven point for most mining rigs.
Under these conditions, an estimated 43% of the Bitcoin supply is now held at a loss.
When mining revenue fails to cover operational costs, miners often sell Bitcoin to meet expenses, which can increase selling pressure in the market.
In response, several publicly traded mining companies—including MARA and Cipher Mining—are shifting resources toward AI and high-performance computing ventures.
Bitdeer has reduced its Bitcoin holdings to zero, while Core Scientific plans to sell a significant portion of its inventory to fund AI-related infrastructure development.
The next difficulty adjustment is expected in early April. If current market and network conditions persist, a further reduction is likely.