JPMorgan Sees $85,000 as Decisive Threshold for Bitcoin Miners

JPMorgan has set its sights on $85,000 as a crucial threshold for Bitcoin's mining industry. This price represents the estimated average production cost of Bitcoin, which JPMorgan views as the cryptocurrency's 'soft floor'. If Bitcoin falls below this level, less efficient miners may be forced to sell more of their holdings.

However, if Bitcoin manages to stay above $85,000 for an extended period, the pressure on miners' profitability could ease. According to a recent analysis by JPMorgan, Bitcoin briefly rose above $85,000 earlier this week but subsequently fell back below it.

JPMorgan's research team also compared gold and Bitcoin on a volatility-adjusted basis in February, suggesting that Bitcoin could be valued at around $266,000 over the long term. Additionally, they predicted that Bitcoin could rise to approximately $170,000 over the next 6-12 months based on this comparison.

While these predictions are significant, JPMorgan's primary focus is on miners' profitability rather than a short-term price target. The bank emphasized that selling pressure from miners could decline if Bitcoin consistently stays above $85,000, but the burden of selling would continue if it falls back below the production cost.