A common driver of insomnia is hyperarousal — and you have described this almost perfectly in your post. Hyperarousal leads to a lot of self-monitoring for sleep and a lot of sleep-related worry and anxiety — and this explains why you are so sensitive to any sound at night and very vigilant and aware of things such as your breathing.
The good news is that there is no evidence whatsoever that insomnia causes any health problem. In addition, since nothing you have written is unusual, I have no reason to believe you wouldn’t find cognitive behavioral therapy for insomnia (CBT-I) techniques very helpful.
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