Bitcoin Mining Costs Exceed BTC Price, Says JPMorgan
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JPMorgan reports Bitcoin has traded below its estimated production cost for five straight months, with mining cost around $78,000 per BTC versus a market price near $62,500, leaving over 20% of miners unprofitable as margins and operating costs tighten. While whale accumulation and declining exchange reserves are bullish signals for crypto liquidity and potential price support, the sustained mining losses elevate risks for miners, CEX liquidity and broader DeFi activity.
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- JPMorgan says Bitcoin has traded below its production cost for five straight months.
- More than 20% of Bitcoin miners are now unprofitable as margins shrink and operating costs remain high.
- Despite stress in the mining sector, whale accumulation and lower exchange reserves are bullish signs.
Bitcoin mining economics have deteriorated sharply this year. According to a new JPMorgan report, Bitcoin has traded below its estimated production cost for five straight months, putting increasing financial pressure on miners.
Bitcoin Trading Below Production Cost
JPMorgan estimates that it currently costs about $78,000 to mine one Bitcoin. Meanwhile, Bitcoin is trading near $62,500. The gap between production costs and market price has shrunk profit margins. As a result, many miners are operating at a loss.
Citing data from CoinShares, JPMorgan analysts led by managing d…
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