Bitcoin mining will still face challenges in 2025. After the latest Halving event in 2024, the Miner rewards decreased from 6.25 BTC to 3.125 BTC, along with an increase in Mining Difficulty, making it even harder to maintain the Bitcoin network.

Although the price of Bitcoin has increased over the past year, miners still face profitability pressures while maintaining the world's largest blockchain. A cryptocurrency expert recently analyzed the state of Bitcoin mining in the current cycle.

A CEO of a crypto company shared some insights about Bitcoin mining on a social platform. In the post on the platform, the CEO pointed out that the current market situation is somewhat unstable. On one hand, the BTC price has surged significantly since the last Halving, nearly doubling, while on the other hand, the mining industry's revenue appears to be lower compared to 2017 and 2021.

Additionally, as the hash rate increases and the on-chain transaction volume decreases, competition becomes increasingly fierce, forcing miners to invest in expensive equipment to maintain competitiveness. To analyze this situation in depth, the CEO explained the Mining Equilibrium Index (MEI), an indicator that assesses the comparison of current mining profitability with historical averages. It compares the average profitability over 30 days with the average profitability over 365 days.

The published data shows that the Mining Balance Index is currently around 1.06, which is higher than the mining stress level but lower than the high value of 2.5 from 2017 to 2021. Increased competition and rising operational costs may force miners to sell some Bitcoin, thereby putting certain pressure on the Bitcoin price.

Currently, based on the market performance of Bitcoin, its price is around $110,700, with little fluctuation over the past day. However, the market seems to have recovered, with an increase of about 3% over the last seven days.

Now the question arises, how long can the miners hold on? This battle over profitability seems to be ongoing, what are your thoughts? Feel free to leave a comment to discuss.

Disclaimer: This article is for reference only and does not constitute investment advice. Past performance does not guarantee future results.