JPMorgan Identifies Critical Price Threshold for Bitcoin Miners

JPMorgan's analysis suggests that Bitcoin miners are experiencing some relief after a prolonged period of selling. The bank estimated Bitcoin's production cost to be around $85,000, which is a crucial price level for miners. BTC spent 280 days below this price, longer than the 2018 mining downturn.

The token briefly climbed up to $87,000 earlier this week, providing some breathing room for miners. JPMorgan's analysts called Bitcoin's production cost a 'soft floor' for the market, implying that it could provide a floor for prices if sustained.

CryptoQuant data shows smaller selling waves and a thin hashrate recovery. The worst selling wave came in February, but later spikes were smaller. Miner-to-exchange flows are still happening whenever Bitcoin rallies, indicating that miners are still looking to raise cash.