Bitcoin Miners Hit Hard as Costs Surpass Revenues

The recent brief respite for Bitcoin miners is over, as costs have again surpassed revenues. According to JPMorgan's estimates, the production cost of Bitcoin stands at around $85,000.

This threshold is significant because it marks a soft support level for the market. When prices fall below this point, marginal miners, those operating at the highest costs, can no longer break even. The Bitcoin price hovered below this level for 280 days, with only brief periods of relief.

Historically, this has been a critical juncture for miners. When prices stabilize above production costs, higher-cost operators are forced to exit the market, reducing supply and allowing prices to recover. However, the current situation is tenuous, as the Capriole Hash Ribbons indicator, which compares 30-day and 60-day moving averages of hashrate, suggests that the recovery could easily reverse.