A decline in Bitcoin price directly impacts miners' profitability by reducing the revenue they earn from block rewards and transaction fees, which are paid in BTC. As Bitcoin's value drops, the fiat equivalent of their earnings shrinks, while operational costs—such as electricity, hardware, and maintenance—remain constant or rise due to inflation. Miners with high energy costs or inefficient equipment may see profit margins erode or turn negative, forcing them to scale back operations, sell stored BTC at a loss, or shut down entirely. However, miners with access to cheap, sustainable energy or those who hodl BTC long-term may weather the downturn better. Historically, price drops trigger a hash rate decline as unprofitable miners exit, reducing network difficulty and potentially stabilizing profits for those who remain. The effect hinges on individual cost structures and market resilience.