Bitcoin mining profitability has dropped to its lowest level in 14 months due to recent price declines. According to CryptoQuant data, the miner profitability index fell to 21, marking the lowest point since November 2024. Analysis by ChainCatch indicates that this decline is primarily driven by significant decreases in Bitcoin prices combined with current mining difficulties, resulting in sharply reduced earnings for miners. Bitcoin mining involves solving complex mathematical problems using computer hardware, with miners rewarded in Bitcoin. However, increasing mining difficulty and falling coin prices have negatively impacted mining profits. Additionally, the network’s hash rate has declined for five consecutive cycles, reaching its lowest level since September 2025, indicating a reduction in overall computing power. Furthermore, severe winter storms in the eastern United States have disrupted some mining farms, causing damage and operational challenges due to heavy snowfall and blizzards, adding further pressure on mining profitability. The decline in profitability means many miners find the business less lucrative, potentially forcing some to limit or cease operations. If Bitcoin prices stabilize or rise and network difficulty decreases, mining profitability may improve; otherwise, miners will continue to face significant challenges.
Source: binance
