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

BlockBeats News, February 5th, the price of Bitcoin is hovering above $70,000, while the current average production cost of Bitcoin is around $87,000, with a gap of about 20%, which is a typical characteristic of a bear market. In the bear markets of 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 and has since dropped by about 20%. It has currently risen to 913 EH/s and is starting to stabilize. At the current price, many miners are still unable to be profitable. Due to income being lower than operating costs, miners have to continue selling Bitcoin to maintain daily operations, pay for energy costs, and repay debts. However, in the grand scheme of things, this situation will not last much longer.