Cryptocurrency analyst Joao Wedson noted that Bitcoin mining is facing challenges in 2025.
BTC prices remain high, but miners’ revenues are far below their peak in 2017 and 2021, according to Wedson.
Wedson argued that miners must invest more in modern equipment due to rising hashrates, but the volume of on-chain transactions remains low from 2022. He said the situation put additional pressure on the sector.
Analysts have announced the development of a new indicator called the Mining Equilibrium Index (MEI) to measure mining profitability. MEI is calculated by comparing the average 30-day revenue/hash ratio with the 365-day average.
- 1.0 or higher: above average condition
- <0.5: Related to stressful conditions, yield, or hashrate adjustments.
According to updated data shared by Wedson, the index is currently 1.06. This level is well above the important 0.5, but it is still far from the peak of 2.5 seen in 2017 and 2021.
Wedson said the key question for 2025 is whether mining companies can continue to protect their Bitcoin network despite increased competition and operating costs (including employee costs, electricity and infrastructure). Analysts say miners may be forced to sell a portion of their reserves if profitability does not cover costs.
*This is not investment advice.
