Profitability indicators are flashing deeper stress. Cryptoquant’s Miner Profit/Loss Sustainability Index fell to 21, the lowest reading since November 2024. The firm interprets this level as signaling that miners are “extremely underpaid” under current price and difficulty conditions.
Notably, analysts point out that this strain persists even after multiple downward difficulty adjustments over the past five epochs. Lower difficulty has offered some relief, but not enough to offset weaker prices, reduced block production, and weather-related outages.
Looking ahead, the researchers suggest that sustained recovery in miner profitability will likely depend on a combination of improved price conditions, stable energy availability, and time for difficulty to recalibrate. Until then, the firm’s data indicates miners remain under pressure, even as the storm itself clears.
FAQ ️ Why did bitcoin mining decline in January 2026?Cryptoquant data shows a U.S. winter storm forced miners to curtail operations, cutting hashrate and production. How much did bitcoin hashrate fall?According to Cryptoquant, network hashrate dropped about 12%, the largest drawdown since 2021. What happened to mining revenue?Cryptoquant reports daily mining revenue slid from $45 million to about $28 million before a partial rebound. Are bitcoin miners profitable right now?Cryptoquant’s Miner Profit/Loss Sustainability Index shows miners are extremely underpaid under current conditions.
