Analysis: Bitcoin's current price is about 20% below the average production cost, and miners are entering a "surrender" phase.

ChainCatcher reports that, according to Coindesk, Checkonchain data shows that Bitcoin’s current price is around $70,000, which is below its estimated average production cost of approximately $87,000, a gap of about 20%. Historically, Bitcoin prices remaining below production costs is often a characteristic of a bear market, a situation that has occurred during the 2019 and 2022 market cycles.

After reaching a historical peak of approximately 1.1 ZH/s in network hash rate last October, the total network hash rate dropped by about 20% due to the shutdown of less efficient mining rigs. Recently, it has rebounded to 913 EH/s, showing initial signs of stabilization. However, at the current price level, many miners are still operating at a loss. To sustain daily operations, cover energy costs, and pay off debts, miners are continuously selling their Bitcoin reserves. This “miner capitulation” phenomenon highlights that the industry still faces ongoing financial pressures.