BTC Below Production Cost for 5 Months as Fed Holds Steady

Bitcoin has now spent five consecutive months trading below the marginal cost of production, according to Wu Blockchain's weekly project update, a stretch that historically has only ended when hash-rate capitulation forces a supply reset or macro liquidity turns. Miners continue to operate at a cash-flow loss on all-in basis, with the publication noting the deviation has rarely lasted this long without a forced rebalance.

Why it matters

The Ethereum network is meanwhile testing Glamsterdam on devnets, the next hard fork combining EOF, changes to proposer-builder separation, and throughput upgrades that developers have framed as a stepping stone to scaling beyond the current L1 capacity ceiling. The devnet phase is the earliest signal that mainnet activation is on a real timeline rather than a wishlist.

Market impact

On the macro side, the Federal Reserve held rates steady this week, with the publication flagging that the next move is more likely a hike than a cut given sticky core inflation. In Europe, the MiCA stablecoin transition period ends July 1, after which issuers without full compliance will lose passporting rights across EU member states. The three timelines — a five-month miner squeeze, an L1 upgrade entering devnet, and a hard regulatory deadline — converge before the end of Q3.

Source: [https://wublock.substack.com/p/wublockchain-weekly-strc-preferred?r=jbpop&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true](https://open.substack.com/pub/wublock/p/wublockchain-weekly-strc-preferred?r=jbpop&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true)