Bitcoin Miner Activity Index Hits Historic Low

The first quarter of 2026 showed a noticeable decline in Bitcoin mining activity. The Miner Position Index (MPI) fell to -1.04, one of the lowest levels in history. This comes amid a drop in hashrate, a decrease in network difficulty, and worsening mining economics. The situation is important because miners remain a key source of supply in the cryptocurrency market.

MPI signals reduced selling pressure from miners

The Bitcoin Miner Position Index (MPI) dropped to -1.04. This indicates that miners are sending fewer BTC to exchanges than usual. As a result, selling pressure from miners is decreasing.

At the same time, some miners are choosing to hold their coins. This may reflect expectations of higher Bitcoin prices or reduced ability to sell under current conditions.

Key facts:

• MPI reached its third lowest level in history;
• selling pressure from miners declined;
• Bitcoin price is around $71,000;
• the asset gained about 3.9% in the last 24 hours.

However, a low MPI alone does not guarantee market growth. Sustained upside requires stronger demand.

Declining profitability drives miner slowdown

The decline in miner activity is linked to worsening crypto mining economics. Under current conditions, many operators are barely profitable or operating at a loss.

Key drivers include:

• hashrate decline from 1 ZH/s to around 920 EH/s;
• mining difficulty dropped by 7.76%;
• estimated production cost reached about $88,000;
• high pressure from electricity costs.

Small and mid-sized miners are gradually exiting the market. As a result, hashrate is becoming more concentrated among large pools and operators.

Similar MPI levels were previously observed during miner stress periods. However, the metric reflects seller behavior only and does not capture total market demand.

Reduced selling pressure may reshape the Bitcoin market

The decline in miner activity may reshape the cryptocurrency market structure. This primarily affects hashrate distribution and competition.

Potential outcomes:

• reduced BTC supply on exchanges;
• stronger influence of large mining pools;
• increased centralization risks;
• higher market volatility.

A recent blockchain reorganization highlighted these risks. Foundry and AntPool mined blocks almost simultaneously, creating a temporary chain split.

As a result, some blocks became orphaned and transactions returned to the mempool. The network quickly restored consensus, but the event exposed risks tied to hashrate concentration.

Institutional players gain stronger positions in mining

The crypto mining industry is entering a structural transition phase. The market is gradually removing inefficient participants.

Key trends include:

• exit of unprofitable miners;
• growing dominance of large and institutional players;
• reduced selling pressure from miners;
• increasing importance of scalable infrastructure.

Sustained growth will depend on rising demand. A low MPI becomes a stronger signal only when supported by capital inflows.

As a result, Bitcoin mining is shifting toward a new model. Efficiency, access to cheap energy, and operational scale are becoming the key competitive factors.

Read also: Bitcoin mining difficulty set for 8% drop