JPMorgan: Bitcoin Mining Costs Exceed Price for Five Months, 20% of Miners Unprofitable
JPMorgan estimates average Bitcoin mining cost at $78,000, with BTC trading below that for five months. About 20% of miners are operating at a loss, and network difficulty has become more sensitive to price changes.
Analysts at JPMorgan have highlighted a worsening mining economy for Bitcoin. They estimate the average cost to mine one Bitcoin at approximately $78,000, and the asset has been trading below that threshold for the past five months.
At current prices, roughly one-fifth of miners are operating at a loss. Meanwhile, hashrate and network difficulty are now more reactive to price swings. The correlation between difficulty and price has climbed to 0.62 over the last six months, suggesting miners increasingly shut off equipment during market downturns.
Source: ForkLog