Bitcoin Miners Under Pressure as Reserves Dwindle and Difficulty Levels Stay High

Bitcoin miners are encountering increasing strain as their reserves continue to decline, now sitting at 1.806 million BTC, according to data from CryptoQuant.

Key Takeaways

Bitcoin miners’ reserves are decreasing, standing at 1.806 million BTC.
Miners are experiencing financial strain as they reduce their holdings to cover costs.
Exchange-to-miner transaction flows have dropped significantly.
Mining difficulty is at record highs despite declining Bitcoin prices.
The mismatch between operational costs and Bitcoin revenue could lead to miner capitulation if prices don't rise.

Bitcoin miners face growing stress as reserves drop and difficulty remains near record highs

The downward trend has been evident over the second half of 2025, which indicates that miners are selling off their holdings to cover rising operational costs as cryptocurrency prices weaken. Unlike typical panic-induced sell-offs, this trend appears more gradual and is often seen during times of reduced profit margins. Lower reserves mean less supply held by miners, which may also signal that operators are feeling more financial stress as their profitability diminishes.

Exchange-to-Miner Transactions Decline Significantly

Another metric from CryptoQuant tracking exchange-to-miner transactions highlights further distress: miners are now receiving fewer coins from exchanges compared to earlier in the year.

Bitcoin exchange to miners

This trend is clear from the persistent decline on the chart, with inflows dropping from above 2,000 BTC per day to a modest range of 400–700 BTC. Decreased flows from exchanges typically indicate less support for miners.

Combined, the drop in reserves and the reduced inflows suggest that the mining sector is operating with tighter profit margins than it did in earlier phases of this cycle.

Mining Difficulty Stays High Despite Price Drop

Adding another dimension to the situation, Glassnode’s mining difficulty chart shows that mining difficulty remains near all-time highs, staying around 660Z, even though Bitcoin prices have fallen from above $120,000 to about $88,000.

Bitcoin mining difficulty

This misalignment between mining difficulty and Bitcoin prices serves as a strong indicator of miners' stress. Historically, prolonged periods of high difficulty paired with deteriorating prices have led to miner capitulation events, where less resilient operators may shut down, liquidate their reserves, or restructure to stay operational.

Implications for Bitcoin's Market Future

The overall findings across these three datasets suggest a growing disparity between mining operational costs and revenue potential. If Bitcoin prices remain below $90,000, miners could soon face challenges.

While current trends do not guarantee an imminent capitulation event, they indicate that the sector could be heading in that direction. An immediate price surge would alleviate much of this pressure, but without such a catalyst, miners’ liquidity stands as a significant risk to monitor in the upcoming weeks.

Final Thoughts