Bitcoin Mining Cost Recovery
Bitcoin Reclaims $85,000 Production Cost Following a Record 280-Day Downturn
Anonymous
JPMorgan says Bitcoin’s estimated production cost of about $85,000 has historically acted as a soft price floor, with sustained trading below it pressuring less-efficient miners to sell holdings, shut down equipment or exit. Bitcoin spent a record 280 consecutive days below that estimate before rising above it in a recent rally, but then slipped back to around $84,000. The bank says miner selling pressure could ease if prices remain at or above the threshold; a brief move above it may not be enough to materially improve mining economics. Analysts also point to industry adjustments, including shifting to cheaper power, retiring equipment and redirecting some computing capacity toward AI.
Key Points
1
The 280-day stretch was longer than the previous record cited by JPMorgan: in 2018, Bitcoin spent about 224 days below the bank’s estimated production cost before reduced miner activity helped the network adjust.
2
JPMorgan estimated that Bitcoin’s hash rate had fallen about 19% from its peak the previous October, while mining difficulty declined approximately 15% over the same period.
3
JPMorgan noted that today’s mining industry is larger and more industrialized than it was in 2018, though the same adjustment mechanism remains: higher-cost miners retreat, reducing network activity.
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