The Bitcoin mining world is in a tricky spot right now.
Ever since the 2024 halving event, miners have been grappling with smaller payouts and increasing operational challenges.
The reward for successfully mining a block dropped from 6.25 BTC to 3.125 BTC, putting extra pressure on those keeping the network running.
Add rising mining difficulty into the mix, and profitability becomes a real challenge—even as Bitcoin’s price climbs.
Despite BTC surging in value over the past year, miners are finding it harder to make money while validating transactions on the world’s largest blockchain.
A crypto industry expert recently shared insights on how the mining landscape has evolved over the current cycle.
Crypto CEO Warns Miners May Need to Sell Holdings
On September 5, Alphractal founder and CEO Joao Wedson took to X to discuss the Bitcoin mining industry, drawing on recent on-chain data.
According to Wedson, 2025 has shown signs of instability for BTC miners, who are navigating a complicated environment.
Wedson pointed out that one factor adding pressure is Bitcoin’s high price, which has nearly doubled since the last halving.
While BTC’s market value is soaring, miners’ earnings haven’t matched the historic peaks seen in 2017 and 2021, leaving many to invest heavily in new, costly equipment just to compete.
Mining Equilibrium Index Sheds Light on Profitability
To better understand miner performance, Wedson highlighted the Mining Equilibrium Index (MEI).
This metric compares short-term mining revenue to long-term averages, effectively measuring whether mining is currently profitable or strained.
-
MEI above 1: Mining conditions are favorable and above average.
-
MEI below 0.5: Mining is struggling, with possible miner capitulation or hashrate reductions.
Currently, Wedson reports the MEI at 1.06. While this indicates miners are operating above stressed levels, it’s still below the highs of 2.5 observed between 2017 and 2021.
With competition increasing and operational costs rising, some miners may need to sell portions of their BTC holdings, potentially creating downward pressure on the market.
Bitcoin Price Holds Steady Amid Miner Challenges
For now, BTC is hovering around $110,700, showing little movement in the past 24 hours.
Over the past week, however, the market has bounced back slightly, with a roughly 3% increase.
This stability comes despite miners feeling the financial squeeze, highlighting the complex dynamics between price trends and mining economics.
Ensuring Accurate and Trustworthy Crypto Reporting
At Bitcoinist, editorial standards are a top priority.
Every article is thoroughly researched and reviewed by industry experts and seasoned editors.
This ensures content is accurate, unbiased, and relevant for readers who rely on high-quality insights into Bitcoin and the broader cryptocurrency space.