JPMorgan analysts say Bitcoin's sustained move above $85,000 production cost could ease miner selling pressure, note industry shift to AI
JPMorgan analysts, led by Nikolaos Panigirtzoglou, stated that Bitcoin's recent rally above its estimated $85,000 production cost, if sustained, could provide relief to miners and reduce the risk of forced selling. Bitcoin had spent 280 days below this estimated average cost before the recent price increase. The analysts also highlighted a broader industry shift, with Bitcoin miners increasingly moving operations towards AI computing, leading to a 19% drop in hash rate from its peak last October and a 15% decline in mining difficulty. This structural shift is expected to reduce excess hash rate growth and slow the rise of Bitcoin's production cost.
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