Bitcoin Price Above $85,000 Could Eased Miner Selling Pressure
JPMorgan analysts have found that Bitcoin's price may be influenced by its estimated production cost. If the cryptocurrency stays above this level, around $85,000, miners' selling pressure could ease.
The bank's research showed that during a previous period in 2018, when Bitcoin remained below this threshold for about 224 days, falling prices pushed higher-cost miners to shut down and reduced the network's hash rate and mining difficulty.
Miners have been shifting some or all of their operations toward artificial intelligence computing due to significant premiums paid by AI companies for access to electricity and data centers. This shift could reduce excess hash rate growth and limit the risk of the network becoming too crowded, according to JPMorgan analysts.