According to Alfrektar, the profitability of miners is at a historical low, mainly for three reasons.

First of all, the total fees for Bitcoin network payments are at their lowest level since 2012. The fees are at the lowest level in 12 years, and this drop is mainly due to the lower on-chain activity during this cycle.

When the on-chain activities of the network decrease, it means that the miners' income decreases, as is currently seen in the market.

Meanwhile, the hash rate has decreased, but the difficulty has not. This is quite unusual.

The network has not yet adjusted, and profit margins are further narrowing. This may be due to large mining farms shutting down ASIC miners because of declining income and weak network demand.

Typically, high hash rate fluctuations are a dangerous signal of network instability and miner uncertainty. Therefore, miners will see a downward adjustment in difficulty, and inefficient miners are forced to exit the market.