JP Morgan: Bitcoin Mining Profitability Deteriorates, With Production Cost at $78K vs Current Price $62.5K

BTC-2.72%
According to JP Morgan's report cited by The Block on June 18, Bitcoin mining profitability has deteriorated significantly, putting pressure on miners as production costs outpace market prices. The bank's analysts estimated Bitcoin's production cost at $78,000 per coin, while the current price stands at $62,500—meaning miners are operating at a loss. Over the past six months, Bitcoin's price and mining difficulty have shown a correlation coefficient of 0.62, indicating miners are increasingly operating near breakeven and more likely to adjust operations based on price movements. Mining difficulty dropped 10% in the second week of June alone as costly mining operations went offline due to below-cost pricing. According to CoinShares data cited by JP Morgan, approximately 20% of mining firms are currently unprofitable, with miners liquidating 32,000 Bitcoin in Q1—exceeding total sales from the entire prior year.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments