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Bitcoin miners are continuing to face declining profitability, even as competition on the network eases, according to a new report from JPMorgan.The investment bank noted that while the Bitcoin network hashrate fell for a second consecutive month in December, miners’ revenues and gross profits continued to deteriorate, reaching record lows. Bitcoin Hashrate Declines for Second Straight MonthJPMorgan analysts reported that the average monthly network hashrate — a key indicator of mining competition — dropped by 30 exahashes per second (EH/s) in December, representing a 3% month-over-month decline.The network’s average hashrate stood at approximately 1,045 EH/s, marking the second straight monthly contraction and signaling reduced competitive pressure among miners.Hashrate measures the total computational power securing the Bitcoin network and is widely used as a proxy for mining difficulty and competition. Mining Revenue Hits Record LowsDespite the easing competition, mining profitability continued to fall sharply.According to JPMorgan’s estimates:Daily block reward revenue per EH/s averaged $38,700 in DecemberThis figure was down 7% from November and 32% lower year-over-year, marking the lowest level on recordDaily gross profit per EH/s also declined 9% month-over-month to roughly $17,100These figures highlight the mounting pressure on miners’ margins. Why Mining Margins Are Under PressureWhile the report did not specify a single cause, JPMorgan suggested several contributing factors:Lower Bitcoin prices since OctoberThe impact of the most recent Bitcoin halving, which reduced block subsidiesRising energy costs, further squeezing operating marginsTogether, these forces have offset the benefits of reduced network competition. Public Bitcoin Miners Still Outperformed in 2025Despite recent profitability challenges, publicly traded Bitcoin miners delivered strong equity performance in 2025.JPMorgan noted that the combined market capitalization of the 14 U.S.-listed Bitcoin miners and data center operators it tracks rose to $48 billion by year-end, representing a 73% increase over the year. Performance highlights included:Hut 8 (HUT): Best performer in December, gaining 2%CleanSpark (CLSK): Worst performer, falling 33%Only two companies outperformed Bitcoin in December, butNine of the fourteen miners beat Bitcoin’s performance over the full year, led by IREN (IREN) and Cipher Mining (CIFR) Outlook: Efficiency Is Now CriticalThe data suggests that while mining competition is easing, profitability will remain under pressure unless Bitcoin prices recover or operational efficiencies improve. As block rewards continue to shrink post-halving, miners with low-cost energy access, scale, and optimized hardware are likely to be the long-term survivors.

Bitcoin Mining Profits Keep Shrinking Despite Lower Network Competition, JPMorgan Reports

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A key on-chain indicator suggests that Bitcoin’s sharp decline in late November may have marked a market bottom, with historical data pointing to significant upside potential ahead.The metric in focus is the short-term holder (STH) profit-to-loss ratio, which compares the amount of BTC held at a profit versus a loss by investors who have held their coins for less than 155 days. Short-Term Holder Ratio Hit Extreme LowsAs Bitcoin plunged toward the $80,000 level in late November, the STH profit-to-loss ratio dropped to an extreme 0.013 on Nov. 24, according to Glassnode data.Historically, readings at or near this level have coincided with either local market bottoms or the definitive end of bear markets. Similar extremes were observed at major turning points in 2011, 2015, 2018, and 2022. Losses Peaked as Profits CollapsedAt the November low:The 7-day moving average of short-term holder supply in profit fell to roughly 30,000 BTCMeanwhile, short-term holder supply in loss surged to 2.45 million BTC, the highest level since the FTX collapse in November 2022, when Bitcoin bottomed near $15,000This imbalance reflected widespread capitulation among newer market participants — a condition that has historically preceded trend reversals. Ratio Recovery Signals Improving Market HealthSince the start of 2026, Bitcoin has rebounded strongly, climbing above $94,000, representing a gain of more than 7%.During this recovery:Short-term holder supply in loss declined to around 1.9 million BTCShort-term holder supply in profit jumped to approximately 850,000 BTCThe profit-to-loss ratio recovered to roughly 0.45This rebound indicates that a growing share of recent buyers are once again in profit. Why This Matters for Bitcoin’s Next MoveHistorically, when the STH profit-to-loss ratio approaches 1, it often continues higher, signaling the start of a sustained bullish phase. Market tops, by contrast, have tended to occur only when the ratio expands dramatically toward extreme levels near 100.With the ratio still well below equilibrium, the data suggests there is substantial room for further upside before the market reaches overheated conditions. Conclusion: On-Chain Data Points to Upside AheadWhile no single metric guarantees future price action, the short-term holder profit-to-loss ratio has repeatedly proven effective at identifying market inflection points. Its sharp recovery from historically extreme lows strengthens the case that Bitcoin’s late November sell-off marked a bottom, rather than the start of a prolonged downturn.If historical patterns hold, Bitcoin may be entering the early stages of its next sustained upward move.

This On-Chain Metric Signals Bitcoin’s Late November Crash Likely Marked the Bottom

Despite Bitcoin’s growing institutional adoption in 2025, misconceptions about its environmental impact continue to circulate. According to ESG analyst Daniel Batten, many of the most common criticisms of Bitcoin mining are based on outdated assumptions rather than empirical evidence.In a recent post on X, Batten outlined nine widespread myths about Bitcoin’s energy use, arguing that peer-reviewed studies and real-world data directly contradict them.“Every disruptive technology faces criticism rooted in misunderstanding, limited data, and fear of the unknown,” Batten noted.High-profile media outlets have fueled these narratives in recent years. In November, Dow Jones criticized Harvard University for allocating part of its endowment to Bitcoin, calling it an environmental disaster. Earlier, Bloomberg claimed Bitcoin “consumes electricity meant for the world’s poor.” Myth 1: Bitcoin Is Resource-Intensive Per TransactionOne of the most persistent claims is that Bitcoin uses excessive energy, water, and hardware resources per transaction. Batten says this is factually incorrect.Multiple peer-reviewed studies have shown that Bitcoin’s resource usage is independent of transaction volume, meaning the network can scale without increasing energy consumption. Myth 2: Bitcoin Mining Destabilizes Power GridsContrary to popular belief, Bitcoin mining does not strain electrical grids. In fact, Batten argues it often improves grid stability through flexible load management.This effect is especially visible in renewable-heavy regions such as Texas, where miners can quickly shut down during peak demand and absorb excess energy when supply is high. Myth 3: Bitcoin Mining Raises Electricity Prices for ConsumersThere is no credible data showing that Bitcoin miners drive up electricity costs for households. According to Batten, neither peer-reviewed research nor market data supports this claim.In several documented cases, mining operations have actually contributed to lower prices by stabilizing demand and funding infrastructure upgrades. Myth 4: Comparing Bitcoin’s Energy Use to Countries Is MeaningfulComparisons between Bitcoin’s energy consumption and that of entire nations are misleading. Batten cites the IPCC, which emphasizes that climate impact depends more on energy sources than on raw consumption.The relevant question is not how much energy Bitcoin uses, but where that energy comes from. Myth 5: Bitcoin Has a Massive Carbon FootprintBitcoin mining itself produces no direct emissions. Its environmental impact comes solely from electricity generation, making its emissions “scope-2” rather than direct.Importantly, Batten highlights that Bitcoin is the only global industry with verified third-party data showing more than 50% of its energy comes from sustainable sources—a milestone few sectors have reached. Myth 6: Proof-of-Stake Is Automatically Greener Than Proof-of-WorkSome argue that Ethereum’s proof-of-stake model is inherently more environmentally friendly than Bitcoin’s proof-of-work. Batten disagrees, saying this argument confuses energy use with environmental harm.Proof-of-work mining can:Reduce methane emissionsStabilize energy gridsSupport renewable energy expansionMonetize wasted or stranded energyThese benefits, he argues, are often overlooked in simplified comparisons. Myth 7: Methane and Flare Gas Could Be Used More Productively ElsewhereWhile it’s technically possible to repurpose landfill or flare gas, Batten says it is economically unviable without Bitcoin mining.Bitcoin’s unique incentive structure makes it one of the few solutions capable of turning stranded methane into a usable and profitable energy source. Myth 8: Bitcoin Mining Diverts Renewable Energy From CommunitiesEvidence suggests the opposite. Bitcoin mining has enabled renewable energy access in regions that previously lacked it.Batten points to projects like Gridless in Africa, which has helped bring renewable electricity to an estimated 28,000 people through Bitcoin-powered microgrids. Myth 9: Bitcoin Mining Wastes EnergyThe idea that Bitcoin “wastes energy” ignores the reality of renewable generation. Solar and wind often produce excess power that would otherwise be discarded.Studies cited by Batten show Bitcoin mining can achieve over 90% utilization of renewable energy, significantly reducing waste.Moreover, labeling energy use as “waste” is subjective. Energy can only be considered wasted if it produces no benefit—and Bitcoin, Batten argues, delivers clear economic and social value. Conclusion: Data Over DogmaAccording to Batten, the environmental debate around Bitcoin should be grounded in data, not narratives. Peer-reviewed research increasingly shows that Bitcoin mining is becoming cleaner, more efficient, and more aligned with renewable energy development.As institutional adoption grows, understanding these realities may be critical to shaping informed policy and investment decisions.

9 Myths About Bitcoin’s Energy Use — Debunked With Real Data, Says ESG Expert

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Bitcoin climbed back above the $90,000 level, reaching a three-week high and sparking renewed discussion about whether the recent bearish phase has ended. However, despite the price rebound, derivatives data and spot ETF flows suggest that traders remain cautious, signaling limited confidence in a sustained upside move for now. Macroeconomic Uncertainty Limits Bitcoin’s RecoveryBTC briefly traded above $90,000 on Saturday, raising hopes of a push toward $95,000 for the first time in seven weeks. Still, broader market conditions continue to weigh on sentiment.While the S&amp;P 500 sits just 1.3% below its all-time high, investors are increasingly uneasy about the economic outlook. Concerns intensified after Tesla reported weaker-than-expected vehicle deliveries, with Q4 sales falling 15% year-over-year. Tesla shares dropped 2.5% and remain more than 12% below their peak.At the same time, Nasdaq futures struggled to reclaim the 26,000 level. The tech sector remains caught between optimism around artificial intelligence and fears of a slowing U.S. labor market.A rare bright spot came from China, where Baidu shares surged 15% following news of a planned IPO for its AI chip unit, Kunlunxin. Even so, many traders believe tech valuations—despite driving a 20% Nasdaq gain in 2025—may now be stretched. Bitcoin Hits Multi-Week Highs, But Leverage Demand Remains WeakDespite Bitcoin’s rebound to its highest levels since mid-December, demand for leveraged bullish positions has not increased. BTC has traded within a narrow 6% range over the past 20 days, frustrating traders waiting for a decisive breakout.The Bitcoin futures basis rate remains below neutral levels, reflecting hesitation among bulls. The current annualized premium of roughly 4% suggests ongoing concern that U.S. trade tariffs and economic headwinds could pressure risk assets.On the positive side, Bitcoin’s recent retest of the $85,000 support zone failed to trigger panic selling, indicating that bearish momentum is limited for now. Spot Bitcoin ETF Outflows Signal Investor CautionAnother factor weighing on sentiment is continued selling in U.S.-listed spot Bitcoin ETFs. Since mid-December, these products have recorded more than $900 million in net outflows, reducing demand from institutional investors.In contrast, gold ETFs have seen seven consecutive weeks of inflows, suggesting that some investors are shifting toward traditional safe havens amid concerns about U.S. fiscal stability and slowing growth. Options Market Shows Skepticism Near $90,000Bitcoin’s options market also reflects caution. One-month BTC put options continue to trade at a premium, meaning professional traders are demanding higher compensation to protect against downside risk.Although the put-call skew remains within a neutral range, it has not flipped bullish. This indicates lingering skepticism around Bitcoin’s ability to sustain prices above $90,000, even though there are no signs of extreme fear or capitulation. Inflation and Rates Remain Key RisksInflation expectations remain a major overhang as the U.S. government considers new tax incentives to stimulate growth. According to CME FedWatch data, bond markets assign only a 16% probability that interest rates will fall to 3.25% or lower by April.Given this backdrop, Bitcoin derivatives traders are not yet positioning for another major rally. Confidence is likely to rebuild gradually after BTC’s prolonged consolidation around the $89,000 level. Bottom Line: Recovery, Not ConfirmationBitcoin’s move back above $90,000 is encouraging, but market data suggests the rally lacks strong conviction. Until ETF flows stabilize and leverage demand improves, the recent rebound looks more like consolidation than a confirmed bull trend.

Bitcoin Back Above $90,000: Is the Bear Market Really Over?

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Bitcoin’s market behavior changed noticeably in 2025. Price swings became less extreme, not because interest faded, but because institutional investors reshaped how BTC is traded and managed. The growing use of derivatives to generate yield from idle Bitcoin holdings played a central role in calming the market. Institutional Strategies Reduced Bitcoin VolatilityThroughout 2025, Bitcoin’s 30-day annualized implied volatility declined steadily. Key volatility benchmarks such as Volmex’s BVIV and Deribit’s DVOL dropped from around 70% at the start of the year to roughly 45% by year-end, briefly touching lows near 35% in September. This structural shift reflects a clear trend: institutions increasingly sold call options against their spot Bitcoin positions to earn additional income. By doing so, they created a consistent supply of options, naturally suppressing implied volatility across the market. Covered Call Selling Became a Dominant StrategyLarge investors holding Bitcoin directly or through spot Bitcoin ETFs found an attractive opportunity in selling out-of-the-money call options. These options only pay off if Bitcoin rallies sharply, making them ideal instruments for yield generation during periods of range-bound price action. By collecting option premiums upfront, institutions effectively monetized their holdings without selling BTC. Since most options expire worthless, this strategy favored option sellers and became increasingly popular as the year progressed. Market participants noted that more than 12.5% of all mined Bitcoin is now held in ETFs and corporate treasuries, assets that do not generate native yield. Covered call writing filled that gap, becoming a primary income strategy and exerting downward pressure on volatility. Bitcoin Options Market Shows Signs of MaturityThe influx of institutional capital also changed the structure of the options market. For much of 2025, put options traded at a consistent premium over calls, a pattern more commonly associated with mature financial markets like equities or commodities. This “put skew” does not necessarily signal bearish sentiment. Instead, it reflects hedged long positioning, where investors remain bullish on Bitcoin’s long-term prospects while actively protecting against downside risk. In previous years, longer-dated Bitcoin options often showed strong call bias, indicating speculative upside demand. In 2025, that dynamic flipped as professional investors prioritized risk management over pure directional bets. Hedged Longs, Not Bearish BetsThe growing preference for downside protection suggests that institutions are long Bitcoin but cautious, aligning BTC’s trading behavior more closely with traditional macro assets. Rather than chasing explosive upside, these investors focus on steady returns, portfolio stability, and disciplined hedging. This evolution marks a key phase in Bitcoin’s market development: less speculative excess, more structured capital, and greater resilience. What This Means for Bitcoin Going ForwardLower volatility does not imply reduced relevance. Instead, it signals market maturation. As institutions continue to deploy derivatives-based strategies, Bitcoin may experience fewer dramatic swings, but stronger foundations. Bitcoin’s transformation into an asset held, hedged, and optimized by large investors suggests that future cycles could look very different from the past—less chaotic, more macro-driven, and increasingly integrated into global financial markets.

Bitcoin Volatility Fell in 2025 as Institutions Used Derivatives to Earn Yield

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That reason is INFLATION! World Gold Council estimates total above-ground gold stock at end-2024: 216,265 tonnes. Gold inflation is 2% per year because of the miners. The gold stock grows at 2% per year, so after t years: Stock = Stock₀ × (1.02)^t. Using “now” as roughly 2025 and projecting to 2140 (about 115 years, this is when all Bitcoin is issued): 2140 gold stock multiplier: (1.02)^115 ≈ 9.75× 216,265 tonnes → ~2,108,657 tonnes by 2140 That is about +875% increase in total stock! So under a steady 2% assumption, gold’s stock keeps compounding and ends the period with almost 10 times today’s above-ground supply. That's correct. The amount of gold that will be in the supply will be close to 10X what it is today. And what will happen with advances in technology? Faster gold mining? More inflation? BITCOIN'S INFLATION RATE GOES DOWN OVER TIME. The block subsidy halves every 210,000 blocks (about 4 years at a 10-minute average). The April 20, 2024 halving cut the subsidy from 6.25 to 3.125 BTC. The last bitcoin is expected to be mined around year 2140. As of late Dec 2025, Bitcoin supply is about 19.97M BTC. Right now the annual inflation of Bitcoin is 0.83%. In 2050 that will be 0.012%. In 2100 it will be .0000015%. In 2140 it will be 0%. By 2140, gold will be drowning in its own abundance while Bitcoin becomes mathematically untouchable, a monetary singularity where inflation dies, supply freezes forever, and scarcity stops being a story and starts being a law of physics.<figure id="figure-sszjnkv11vmjtryf2f"><img id="sszjnkv11vmjtryf2f" src="https://cdn.durable.co/blocks/1206WB95249noN4FWdbghQ3yswBbtXmXSe7xyt2gd9td0iXvUCS1vMmlQfHN250E.png" alt="" title="" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

The REAL REASON why BITCOIN is VASTLY SUPERIOR to GOLD!

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Bitcoin Mining Profits Keep Shrinking Despite Lower Netwo...

This On-Chain Metric Signals Bitcoin’s Late November Cras...

9 Myths About Bitcoin’s Energy Use — Debunked With Real D...

Bitcoin Back Above $90,000: Is the Bear Market Really Over?

Bitcoin Volatility Fell in 2025 as Institutions Used Deri...

The REAL REASON why BITCOIN is VASTLY SUPERIOR to GOLD!