Data: Bitcoin trading below the average production cost of around $87,000, a typical characteristic of entering a bear market

BlockBeats News, February 5th, the price of Bitcoin hovering above $70,000, while the current average Bitcoin production cost is around $87,000, with a gap of about 20%, which is a typical feature of a bear market. In previous bear markets in 2019 and 2022, the market price of Bitcoin had fallen below the average production cost, but eventually rebounded.

The total network hash rate of Bitcoin reached a peak of about 1100 EH/s in October last year and has since dropped by about 20%. It has now rebounded to 913 EH/s and started to stabilize. At the current price, many miners are still unable to make a profit. Due to income being lower than operating costs, miners have to continue selling Bitcoin to sustain daily operations, pay energy bills, and repay debts. However, in the grand scheme of things, this situation will not last long.