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HomeBlockchain NewsCost of Producing Bitcoin Dropped to around $13,000, says JPMorgan

Cost of Producing Bitcoin Dropped to around $13,000, says JPMorgan

The cost of producing Bitcoin has gone negative as it dropped from about $24,000 at the start of June to around $13,000 now, according to JPMorgan Chase & Co.

The cost of producing Bitcoin has gone negative as it dropped from about $24,000 at the start of June to around $13,000 now, according to JPMorgan Chase & Co.
Bloomberg reported, citing a note from the Cambridge Bitcoin Electricity Consumption Index, strategists led by Nikolaos Panigirtzoglou, that the drop in the production cost estimate is almost entirely due to a decline in electricity use.

“They posit that the change is consistent with efforts by miners to protect profitability by deploying more efficient mining rigs, as opposed to a mass exodus by less efficient miners. They also say it could be seen as an obstacle to price gains,” Bloomberg reported.

Last month, strategists from JPMorgan stated that sales of Bitcoin by miners could pressure the price into the third quarter as the operations boost liquidity, meet costs and possibly deleverage.

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