Categories: Bitcoin Latest News

Bitcoin Production Cost Has Dropped to About $13K, JPMorgan Says

Declining production costs could be seen as a negative for bitcoin prices, the Wall Street bank said in a report.Read MoreFeedzy

The cost to produce bitcoin (BTC) has fallen to about $13,000 from around $20,000 at the start of June as miners battle the bear market and efficiency in mining rises, according to investment bank JPMorgan.

The drop in bitcoin’s production cost stems from the “decline in electricity use as proxied by the Cambridge Bitcoin Electricity Consumption Index, while the hash rate has been fluctuating in recent months with no clear downtrend,” according to JPMorgan strategists led by Nikolaos Panigirtzoglou.

While improved profitability means there may be less pressure for miners to sell their bitcoin holdings for liquidity purposes, the drop in production costs could be viewed as a negative for overall bitcoin price, JPMorgan added in its note to clients.

“The decline in the production cost might be perceived as negative for the bitcoin price outlook going forward to the extent that the production cost is perceived by some market participants as the lower bound of the bitcoin’s price range in a bear market.”

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Recent Posts

Bringin Makes Bitcoin Easier To Spend In Europe

Founder: Prashanth Chandrashekar Date Founded: March 2023 Location of Headquarters: Lithuania Number of Employees: 3…

6 minutes ago

BlackRock to Launch Spot Bitcoin ETP in Europe

BlackRock Inc., the world’s largest asset manager with over $11.5 trillion in assets under management,…

6 minutes ago

The Great Accumulation: A Corporate Race for Bitcoin

For decades, corporate treasuries have relied on cash, bonds and short-term investments to preserve capital.…

1 hour ago

Bitcoin to Hit $500K by 2028 as ETFs Ease Access, Volatility Drops: Standard Chartered

The price of bitcoin (BTC) could balloon to $500,000 by 2028, lifted by increased investor…

1 hour ago

Bitcoin Price Action: Why The Next 30 Days Could Be A Game-Changer For The Market

Crypto analyst CryptoCon has provided valuable insights into the Bitcoin price action in this cycle.…

2 hours ago

Bitcoin Drops Below Key 2025 Realized Price Level, Raising Risk of Further Downside: Van Straten

The average withdrawal price of bitcoin (BTC) from exchanges in 2025 currently stands at $100,356.…

4 hours ago