Bitcoin mining has been working on a decline in revenue since the last half of the event in 2024, with miners' compensation falling from 6.25 BTC to 3.125 BTC. In addition to this, mining difficulty continues to increase, making it more difficult to protect the Bitcoin network.
Despite rising BTC prices over the past year, miners have struggled to maintain profitability while securing the world's largest blockchain. Crypto experts have shared insights into Bitcoin mining over the past few months in the current cycle.
Miners may be forced to eliminate BTC Holdings: Crypto CEO
In a September 5th post on the X Platform, Alphractal founder and CEO Joao Wedson discussed the Bitcoin mining landscape with recent insights from chain data. According to on-chain analysts, the BTC mining sector has looked a bit shaky so far in 2025.
Wedson said the Bitcoin mining struggle was partly due to the high prices of BTC, and has surged almost 100% since the last harving event. The best cryptocurrencies are considered to be highly regarded compared to those acquired by blockchain baritators at their peak in 2017 and 2021.
According to the founders of Alphractal, the combination of rising hashrates and lower on-chain volumes added a victory block competition in the BTC network. These suboptimal conditions create extra pressure and force miners to compete by investing in expensive modern equipment.
To put things in an on-chain perspective, Wedson highlighted the Mining Equilibrium Index (MEI), which measures the profitability of current mining to historical averages (ratio of short-term and long-term mining revenue efficiency). This metric works by comparing the average 30-day revenue per hash to the 365-day average.
The founders of Alfractal shared that MEI metrics exceeded one or more above average mining conditions. Meanwhile, when this index falls below 0.5, it suggests a struggling mining industry, which could be linked to yielding or hashrate adjustments.
Source: @joao_wedson on X
Wedson revealed that the mining equilibrium index is currently around 1.06. This is far above the stressful mining levels that miners can no longer maintain operation. However, on-chain data experts noted that the current levels are also below the 2.5 high seen between 2017 and 2021.
With the rise in competition and operating costs to secure the Bitcoin network, Wedson has revealed that miners could be forced to offload some of their BTC holdings. Ultimately, this could put some pressure on the prices of flagship cryptocurrency.
Bitcoin price at a glance
At the time of writing, the BTC priced around $110,700, and does not reflect any significant movements on past days. However, market leaders have recovered in some way, increasing almost 3% over the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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