Bitcoin Surpasses Mining Cost Threshold, Miner Selling Pressure Eases
Bitcoin has finally surpassed its estimated production cost of around $85,000 per coin for the first time in approximately 280 days. According to JPMorgan's estimates, Bitcoin's current production cost stands at about $84,948, while the price is currently around $85,795.
This milestone suggests that pressure on miners and the risk of forced selling could ease if Bitcoin maintains this level for an extended period. However, JPMorgan cautioned that this level should be viewed as a 'cushioned floor' rather than a hard price bottom.
The bank explained that if Bitcoin's price remains below its estimated production cost for a prolonged period, miners with high electricity and equipment costs would see profitability deteriorate, potentially leading them to sell more of their Bitcoin holdings or exit the market entirely.