Data compiled by Woofun AI indicates that Bitcoin miners are currently operating at a substantial deficit, with production costs estimated at $76,000 while the asset trades near $65,000. This $11,000 gap has compelled many operators to liquidate holdings to cover expenses, evidenced by a surge in inflows to Binance.

Concurrently, network fundamentals show signs of strain, with miner hash rate declining by approximately 28% since the end of October last year. This reduction coincides with a 20% adjustment in mining difficulty, suggesting that weaker operators are exiting the market or reducing activity due to unsustainable economics.