Bitcoin Breaks Above Production Cost Threshold After Record-Long Stretch

JPMorgan's analysts have observed that Bitcoin has finally reclaimed its estimated production cost of approximately $85,000 after trading below this level for a record-breaking 280 consecutive days.

This milestone is significant as it marks the longest stretch below production cost on record, exceeding the roughly 224 days logged in 2018. According to JPMorgan's report dated the 23rd, if this level is sustained, selling pressure from miners could ease.

The analysts explain that production cost has historically served as a 'soft floor' for Bitcoin prices. When the price trades below this level for an extended period, miners burdened by heavy electricity and equipment costs fall into unprofitability and are forced to sell their BTC holdings or idle their rigs.