Skip to main content

Declining Bitcoin price continues to expose miners to loss



Key Takeaways



  • With Bitcoin price trading around $88,000 and the average nationwide cost of energy at about $0.14, the cost of mining a Bitcoin is close to $95,000.

  • The high cost of energy and the current Bitcoin price range put miners at a loss.

  • A sizeable number of mining companies are now transitioning to AI data centres


Bitcoin mining energy consumption data from the Cambridge Bitcoin Energy Consumption Index (CBECI) indicates that miners who pay $0.10 per kWh for energy will be at a loss for every Bitcoin mined. The CBECI data shows that some have already faced this price as far back as October 2025, when the average commercial energy cost moved to $0.14 per kWh. At this rate, the cost of mining a Bitcoin is around $94,000, while the Bitcoin price is around $88,000 at press time.

With the rise in energy costs and declining Bitcoin price, Bitcoin mining is now unprofitable and perhaps unsustainable for miners across the United States. Present market conditions do not suggest any upswing for BTC anytime soon. After losing momentum and plummeting from an all-time peak of $126,000 over three months ago, it has struggled and has been unable to stage a comeback. Miners in the United States are feeling the heat with no relief in sight. However, it's not just in the U.S.; Chinese miners are also struggling with energy costs, paying $0.11 per kWh to mine BTC, a rate that also puts many of them at a loss.

Meanwhile, miners in Paraguay are still very much in business since the energy cost is significantly cheaper at $0.05 per kWh. The mining cost of a Bitcoin for Paraguay-based miners is about $60,000, showing their healthy profit margin.

US miners switch to AI


In an unsurprising turn of events, numerous prominent miners such as TeraWulf, CleanSpark, IREN, Core Scientific, and Bit Digital, among many others, are focusing infrastructure on AI data center services and switching from crypto mining.

For those still mining, a positive shift in macroeconomic factors to trigger a rebound for Bitcoin would restore normalcy and stop debt accumulation. However, fingers remain crossed as the market action unfolds.

https://www.cryptobreaking.com/declining-bitcoin-price-continues-to/?utm_source=blogger%20&utm_medium=social_auto&utm_campaign=Declining%20Bitcoin%20price%20continues%20to%20expose%20miners%20to%20loss%20
Labels:

Comments

Post a Comment

Popular posts from this blog

Coinbase's x402 launches AI agents app store for payments

Coinbase-backed x402 has unveiled Agentic.market, a dedicated marketplace aimed at increasing the usefulness of AI agents by aggregating thousands of apps and services that agents can access without any API keys. The rollout positions the platform as a central hub for agents to discover, evaluate, and deploy capabilities across a standardized payments layer. Coinbase product lead Nick Prince described Agentic.market in a video posted on X as a storefront for discovering, comparing, and using x402 services. The marketplace is designed to give both humans and their AI agents access to a wide range of tools—from data feeds to consumer apps—without the friction of managing API credentials. A storefront for discovering, comparing, and using x402 services. Thousands of services. Zero API keys. Powered by x402. Prince added that the market offers a web interface for humans to browse and assess services, alongside a programming layer that lets AI agents autonomously search, filter, and integra...
Post a Comment
Read more

Top Cryptocurrencies to Watch: BTC, ETH, BNB, XRP, Solana, Dogecoin & More

Market Analysis and Price Predictions for Key Cryptocurrencies Recent market dynamics reveal a cautious sentiment across the cryptocurrency landscape, with Bitcoin struggling to maintain levels above $90,000 and many major altcoins facing downward pressure. Indicators point toward reduced participation from both institutional and retail investors, raising concerns about a potential consolidation phase after notable gains earlier in the year. Bitcoin has fallen below $87,000, reflecting waning demand at higher price points. Institutional fund flows into BTC and ETH ETFs have turned negative, indicating a period of subdued market activity. Active addresses and Binance deposit/withdrawal activities are at annual lows, suggesting market indecision. Most leading altcoins are approaching support levels, with some poised for potential breakdowns. Tickers mentioned: Bitcoin, Ethereum, Binance Coin, XRP, Solana, Dogecoin, Cardano, Bitcoin Cash, Chainlink, Hyperliquid Sentiment: Neutral to Sli...
Post a Comment
Read more

Analyst: Bitcoin can reclaim $100K without a new narrative

Bitcoin has stalled below the $100,000 threshold, marking a run of almost five months without a breakout above that level. As of the latest market close, BTC hovered around $78,250 after a February nadir of about $60,000, underscoring a slow, grinding recovery amid broader market dynamics. In parallel, tech markets—especially AI-focused equities—have captured the spotlight, with investors rotating capital away from crypto in search of different risk-reward profiles. Nvidia (NVDA), the leading AI stock by market cap, has gained about 5.08% since the start of the year, while Bitcoin has faced a roughly 10% dip over the same period, illustrating a diverging performance within risk assets. MN Trading Capital founder Michael van de Poppe suggested that Bitcoin may not require a fresh narrative to push back above $100,000. In a post on X, he asked what narrative would drive BTC to the milestone and concluded that “price moves upwards, and the narrative will create itself.” He continued that ...
Post a Comment
Read more