Bitcoin Surpasses Mining Cost Threshold Amid September Rally
According to JPMorgan's latest report, Bitcoin has finally surpassed its mining cost for the first time in 280 days. The bank estimates that this level, around $85,000, is the average cost of mining 1 BTC.
This milestone was reached during the September rally when Bitcoin prices briefly exceeded $85,000. Analysts believe that if Bitcoin remains above this threshold, the pressure on miners and the risk of forced sales will decrease.
Miners with high electricity costs may become unprofitable if Bitcoin trades below this level for an extended period. This could lead to a reduction in hash rate and mining difficulty.
JPMorgan notes that a similar scenario occurred in 2018 when Bitcoin's price was below the estimated production cost for about 224 days. During that time, the most costly miners shut down operations, resulting in a decline in hash rate and mining difficulty.