JPMorgan Predicts BTC Production Cost To Slump At $13,000

JPMorgan estimates BTC cost production down to $13,000.

Bitcoin production costs dropped from $24,000 to around $13,000 in June.

[{"selector":"#anim-33706974-f1da-4f0e-94c6-851d755df31b","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-075ed418-09ac-4e1c-a1d2-ced88c53641a","keyframes":{"transform":["translate3d(-83.52273%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

According to JPMorgan Chase & Co. this drop can harm the pricing of the token.

[{"selector":"#anim-0ad861c7-65ae-46f2-80f7-9307259dc46c","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8ef8f67e-4256-40d9-8551-a208b361bfee","keyframes":{"transform":["translate3d(-90.51383%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The drop is predicted by the decline in electricity use as proxied by the Cambridge Bitcoin Electricity Consumption Index.

[{"selector":"#anim-fb19914f-3515-44ce-94c6-a5b80f3e6653","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4a817e2a-0de7-430c-92f2-cb2b9ab481fd","keyframes":{"transform":["translate3d(-92.41803%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

BTC recorded its ATH at $69,000 in November and had been down by 60% till date after the Federal Reserve increased the interest rate to curb inflation.

[{"selector":"#anim-047b37a7-a9d3-4371-a5fd-294c78c3a912","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-155752a4-199f-4f32-9df8-1d6108bc4c8a","keyframes":{"transform":["translate3d(-92.62295%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

JPMorgan's strategist said last month that sales of Bitcoin by miners could pressure the price into the third quarter as the operations boost liquidity, meet costs and possibly deleverage.

[{"selector":"#anim-a17ac645-ef1e-49a9-a102-87b4b0fe1f11","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cef9d24d-3921-4350-a451-37b10356c518","keyframes":{"transform":["translate3d(-92.41803%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

As per miner core‘s report, publicly traded miners have struggled along with digital assets, Marathon Digital Holdings Inc. is down 76%, Riot Blockchain Inc. has dropped 78% and Core Scientific has tumbled to 86%.

[{"selector":"#anim-ebed4aa1-db2b-41de-938e-d49b52dc1992","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ee6d4ce1-ed3f-4cc8-8f1c-15d14043ef84","keyframes":{"transform":["translate3d(-93.64754%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The report also showed that miners dumped most of their Bitcoin holdings in June.

[{"selector":"#anim-cdca14e3-23b9-439a-be63-593515933479","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-98dde209-5159-4790-902a-9507a48be753","keyframes":{"transform":["translate3d(-89.34426%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fe1d62e7-3302-4b32-9f3b-9407937e4de4","keyframes":{"transform":["translate3d(-184.21057%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-f905088e-c312-42e4-ae2b-18908701ef37","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}] More Crypto Stories...