[JPMorgan: High-Cost Miners Forced to Sell Due to Rising Electricity Prices and Declining Bitcoin Prices]
JPMorgan analysts stated that the recent pressure on Bitcoin prices is primarily influenced by the decline in hash rate and mining difficulty, as well as dynamics surrounding Strategy (stock ticker MSTR). The drop in hash rate reflects the dual impact of China's reaffirmation of its mining ban and the exit of high-cost miners due to squeezed profits. Although a decline in hash rate typically boosts miners' revenue, the current Bitcoin price remains below production costs, leading to increased selling pressure in the market.
JPMorgan has revised its estimated Bitcoin production cost down to $90,000, lower than last month's $94,000, and noted that for every $0.01/kWh increase in electricity prices, the production cost for high-cost producers rises by $18,000. Some high-cost miners have been forced to sell Bitcoin due to soaring electricity prices and declining prices.