Bitcoin (BTC) and cryptocurrency Wall Street giant JP Morgan, which is frequently on the agenda with its reports on the market, said that the cost of Bitcoin production decreased by 50% compared to June.
JP Morgan In his recent report, he stated that the cost of producing Bitcoin was around $24,000 at the beginning of June but has now dropped to around $13,000.
This decline BTC Bank analysts led by Nikolaos Panigirtzoglou, who stated that there may be a negative situation for the price of the product, wrote that this decrease in the cost of production is due to the decrease in electricity use, according to the Cambridge Bitcoin Electricity Consumption Index data.
Analysts attribute the decline in electricity usage to the fact that cryptocurrency miners are trying to maintain their profitability by establishing more efficient production platforms.
Warning that this may put a negative pressure on the price of BTC, JPMorgan analysts included the following statements in the report:
“This clearly positively affects the profitability of miners. It also potentially reduces pressure from miners to sell their Bitcoins to cover their costs.
However, this decrease in BTC production cost could be perceived as negative for Bitcoin price going forward.
Because the cost of production may be perceived by some investors as the lower end of the Bitcoin price range in the bear market.”
JPMorgan analysts, in their reports published last month, predicted that the selling pressure in Bitcoin could continue in the third quarter.
The largest cryptocurrency by market capitalization bitcoinis down nearly 70% from its all-time high of $69,000 in November 2021.
FED’s tightening in monetary policy and increasing interest rates as part of its fight against rising inflation were effective in the decline of BTC.
According to data from CoinGecko, BTC stands at $19,786 at the time of writing.