$85K: JPMorgan's Key Cost Level for Bitcoin
JPMorgan has highlighted $85,000 as a key cost level for Bitcoin to watch in the current market. The bank considers this level to be Bitcoin's 'soft bottom,' directly impacting miners' operational pressures and their pace of selling held coins.
According to CoinDesk, J.P. Morgan noted that when Bitcoin prices fall below the average production cost, less efficient miners face greater pressure and may need to sell more of their Bitcoin reserves to cover operational expenses.
The bank believes briefly surpassing this level is not enough to improve miners' circumstances; for a more noticeable improvement, Bitcoin needs to sustain this price or higher for an extended period. If BTC continues to trade below cost for an extended period, some miners may further increase their selling, adding additional supply pressure to the market.