Recent on-chain data reveals an 11% decline in Bitcoin (CRYPTO:BTC) mining hashrate, coinciding with miner profitability reaching a three-year low.

CryptoQuant's Maartunn highlights the significant stress on miners due to underpayment, as indicated by the "miner profit/loss sustainability" metric.

While miner revenues were buoyant during the recent price surge, the slashing of block rewards during the Halving event has drastically impacted mining economics.

Despite initial high revenues post-Halving, driven by increased transaction activity from the introduction of Runes protocol, transaction fees have since decreased, exacerbating profitability challenges for miners.

The decline in hashrate signals potential strain on less efficient miners, prompting concerns about network security and stability amidst decreasing mining activity.