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

PANews reported on February 5th that, according to Coindesk, Checkonchain data shows that Bitcoin's current price is around $70,000, which is lower than its estimated average production cost of around $87,000, a difference of about 20%. Historically, Bitcoin's price consistently falling below its production cost has often been a characteristic of bear markets, with similar situations occurring in the market cycles of 2019 and 2022.

After reaching a historical peak of approximately 1.1 ZH/s last October, the network hashrate dropped by about 20% due to the shutdown of less efficient mines. It has recently rebounded to 913 EH/s, showing initial signs of stabilization. However, at current prices, many miners are still operating at a loss. To maintain daily operations, pay energy costs, and repay debts, miners are continuously selling their Bitcoin reserves. This "miner capitulation" phenomenon highlights the ongoing financial pressure the industry faces.