7 facts about Bitcoin (BTC) profitability decline that crypto investors should understand

Jakarta, Pintu News – Bitcoin (BTC), the largest crypto asset by market capitalization, is now facing immense pressure on mining profitability amid falling prices and high operational costs. This phenomenon not only impacts miners, but also has implications for the crypto market as a whole. The following summarizes seven key facts that are important for both experienced and novice investors to understand.

1. Bitcoin Mining Profitability Hits 14-Month Low

Bitcoin mining profitability is now at its lowest level in 14 months according to CryptoQuant data. The miner profitability index dropped dramatically, reflecting the severely depressed miner revenue. This decline is directly related to the recent significant drop in Bitcoin price.

For cryptocurrency investors, declining profitability means structural pressure on the mining industry. As revenue declines, some miners may struggle to cover operational costs. The knock-on effect could affect supply and network security in the medium term.

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2. Many Rigs Approaching Shutdown Price

As the price of BTC drops, many specialized mining machines (ASICs) are now operating close to break-even. Some popular models such as Antminer S19 XP+ Hydro and WhatsMiner M60S make no profit if the BTC price remains below a certain level.

The shutdown price is the level at which power and maintenance costs are equal to or higher than the revenue generated. When many rigs reach this point, operators face a tough decision: sell their assets or cease operations.

3. Shutdown Point Ranges Around US$69,000-US$74,000

Newer miner models such as the Antminer S21 have shutdown prices in the range of around US$69,000 to US$74,000 per BTC. If the Bitcoin price is below this range, most miners do not make a profit.

Conversion to Rupiah with a value of 1 USD = IDR16,771 means that the shutdown occurred around IDR1.16 billion to IDR1.24 billion per BTC. This is a big pressure considering electricity costs and capital requirements remain high.

4. Decrease in Hash Rate and Miner Revenue

Bitcoin’s hash rate has been decreasing over the last few periods, indicating that some miners may have left or reduced operations. A decrease in hash rate indicates the network is experiencing a decrease in the total computing power it is capable of processing.

A declining hash rate also indicates that miners’ income is getting thinner as competition for blocks becomes fiercer. This can make the network more vulnerable to short-term fluctuations.

5. Weather Factors and External Disruptions Worsen the Situation

Some miners also faced external disruptions such as winter storms in the United States that affected operations and infrastructure. These disruptions worsened profitability conditions as repair costs and downtime increased.

Crypto investors need to understand that factors outside the market can have a real impact on the mining economy. This reflects the complexity faced by an industry that is often thought to depend solely on the price of the asset itself.

6. Risk of Forced Sale by Miner

When operations become unprofitable, some miners may choose to sell their Bitcoin reserves to cover fixed costs. These sales could potentially add to selling pressure in the market.

Such movements can deepen price declines if large sales volumes occur during periods of high volatility. Investors need to monitor miner supply trends as one of the market indicators.

7. Wider Impact on Crypto Market

This profitability pressure reflects broader market conditions, indicating that Bitcoin is currently trading under strong selling pressure. Miners experiencing financial difficulties are often part of the larger price dynamics.

For the cryptocurrency community, understanding mining pressure helps in assessing the long-term risks to network security and price dynamics. This phenomenon is not just a technical issue; it has fundamental implications for digital asset markets.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Bitcoin.com News. Bitcoin Miners Hit ‘Shutdown Prices’ as Profitability Slumps to Multi-Month Low. Accessed February 4, 2026.