Analysis: The current price of Bitcoin is about 20% lower than the average production cost, and miners are entering the "surrender" phase

According to Coindesk, data from Checkonchain shows that the current price of Bitcoin is around $70,000, which is below its estimated average production cost of about $87,000, a gap of approximately 20%. Historically, Bitcoin prices remaining below production costs is often a characteristic of bear markets, a similar situation was seen in the market cycles of 2019 and 2022.

The total network hash rate reached a historical peak of about 1.1 ZH/s last October but has since dropped by about 20% due to the shutdown of less efficient mining machines, recently rebounding to 913 EH/s, showing initial signs of stabilization. However, at the current price, many miners are still in a state of loss. To maintain daily operations, pay energy costs, and service debts, miners are continuously selling their Bitcoin reserves, a phenomenon known as "miner capitulation," highlighting that the industry still faces ongoing financial pressure.