Bitcoin has traded below its estimated production cost of $78,000 for five consecutive months, forcing miners to sell assets and leading to network difficulty adjustments. JPMorgan notes that approximately 20% of miners are currently unprofitable.
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Bitcoin miners face prolonged squeeze as price stays below production cost
IN SHORT
Bitcoin has traded below its estimated production cost of $78,000 for five consecutive months, forcing miners to sell assets and leading to network difficulty adjustments. JPMorgan notes that approximately 20% of miners are currently unprofitable.
Frequently asked questions
JPMorgan estimates the cost to mine one Bitcoin at approximately $78,000.
Bitcoin has been trading below its estimated mining cost for five consecutive months.
Approximately 20% of miners are currently unprofitable, according to CoinShares data cited by JPMorgan.
When the price drops below cost, higher-cost miners power down, reducing the hashrate and leading to a lower mining difficulty reset.
What Happens Next
01JPMorgan expects larger and more frequent mining difficulty adjustments.
02Further accumulation readings may signal a contrarian bullish trend.
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Bitcoin miners face prolonged squeeze as price stays below production cost