Recently, miners seem to be really struggling. Last month, the difficulty dropped by 7.76%, and even though Bitcoin is currently priced at $72,850, the average mining cost is around $88,000. Losing nearly $15,000 per mining attempt, so it's no wonder things are serious.

The root cause is ultimately energy costs. Due to geopolitical tensions in the Middle East, oil prices have exceeded $100, and with the Strait of Hormuz effectively blocked, electricity rates have surged. About 8-10% of the global hash rate comes from this region, and as mining profitability declines, miners are gradually leaving. As a result, block generation speed is slowing down, and network difficulty continues to decrease.

Because of the tougher mining economics, mining companies are also trying to adapt. Companies like Marathon Digital are diversifying into AI and high-performance computing, selling more Bitcoin in the process. This is already adding downward pressure in a bearish market. It seems to be one of the reasons recovery after winter is slower.

The next difficulty adjustment is expected around early April, and if Bitcoin stays below $88,000, difficulty will inevitably keep decreasing. As miners are forced to sell off, the spot market will also suffer, creating a vicious cycle.