JPMorgan Says Bitcoin's $85K 'Soft Floor' Holds Key to Miner Relief

JPMorgan analysts view Bitcoin's average production cost as a 'soft floor' for the cryptocurrency, meaning that when BTC trades below this level, inefficient operators may be forced to sell more of their reserves.

This concept is crucial because it affects miners directly. When Bitcoin's price falls below its production cost, miners struggle to cover their expenses, which can lead to selling pressure on the market.

Recently, Bitcoin has been trading near $84,000, and JPMorgan analysts believe that a move above $85,000 would provide much-needed relief to miners. However, it remains to be seen whether this rally will have legs.