Bitcoin is currently trading below the average cost of production for listed miners, a situation that historically doesn’t last long, according to recent CoinShares research.

The average production cost for publicly traded bitcoin mining companies sits around $74,600, per the report. When prices fall below this threshold, miners face pressure on their balance sheets and capital spending, typically forcing a contraction in supply.

The gap between bitcoin mining economics and current prices may signal an approaching market bottom, particularly as large holders have started buying again after weeks of selling pressure, according to the CoinShares report.

The shift in investor behavior appears in multiple data points. Entities holding more than 10,000 bitcoin previously sold roughly $28 billion worth during the recent downturn starting in October 2025. But over the past two weeks, these large holders reversed course and purchased approximately $4.7 billion of bitcoin, per CoinShares.

At the same time, trading volumes reached historic highs. Global crypto exchange-traded product volumes hit a record $18.5 billion on February 8, according to the report. These volume spikes during price declines have typically reflected final selling pressure rather than the start of prolonged downturns.

The production cost threshold creates natural support levels. Spot prices staying materially below what it costs miners to produce new bitcoin are “short lived,” the report stated, because the economics become unsustainable for marginal producers.

Mining Sector Performance

The actively managed CoinShares Bitcoin Mining ETF (WGMI) offers direct exposure to companies navigating these production economics. The actively managed fund holds $201.3 million in assets and returned 14.5% year-to-date, per ETF Database.

IREN Limited (IREN) represents the fund’s largest position at 22.5% of assets, followed by Cipher Mining Inc. (CIFR) at 18.3%, according to ETF Database. Hut 8 Corp. (HUT), Applied Digital Corp. (APLD), and TeraWulf Inc. (WULF) round out the top five holdings.

For investors seeking broader bitcoin exposure, the CoinShares Bitcoin ETF (BRRR) holds $425.5 million in assets with a 0.25% expense ratio and saw $4.56 million in net inflows over the past month, per ETF Database.

The report noted that while the market remains under pressure, with more than 75% of bitcoin positions still underwater, behavioral and production-level signals suggest “downside momentum is close to exhaustion.”

For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.