BTC price is now below 110k at $108,909 whereas hashrate is very high at 1.122ZH/s.

Does that mean that more people are mining bitcoin despite the price drop?
If network difficulty increases then it gets more difficult to mine a block. Also if price drops, it cuts through your margins right?

I might be wrong but doesn't a high hashrate and low BTC price a recipe for a loss. (unless obviously you get ultra cheap energy)

Considering all this why are people still pouring in compute?

What's the thought process?