Bitcoin Production Cost Has Dropped to About $13K, JPMorgan Says
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The drop in bitcoin’s production cost stems from the “decline in electricity use as proxied by the Cambridge Bitcoin Electricity Consumption Index, while the hash rate has been fluctuating in recent months with no clear downtrend,” JPMorgan strategists led by Nikolaos Panigirtzoglou said. The drop could be viewed as a negative for overall bitcoin price, JPMorgan added in its note to clients to clients. The improved profitability means there may be less pressure for miners to sell their bitcoin holdings for liquidity purposes, the strategists said in their note to the clients on Monday. The price of bitcoin has declined since the start of the year. The market is expected to remain at a low of $200,000 per day. Source