JPMorgan: Bitcoin production costs have decreased from $90,000 at the beginning of the year to $77,000

Mars Finance reports that, according to The Block, JPMorgan analysts have stated that their estimated Bitcoin production cost—traditionally seen as a “soft price support”—has decreased from $90,000 at the beginning of the year to $77,000, primarily due to recent declines in network hash rate and mining difficulty. The analysts pointed out that the recent drop in Bitcoin network hash rate has triggered the largest difficulty adjustment since China’s mining ban in 2021, with a total decrease of about 15% so far this year. The reduction in difficulty provides breathing room for remaining miners, with efficient miners seizing market share from high-cost miners forced to shut down. The analysts noted that hash rate has begun to recover, and they expect production costs to rebound at the next difficulty adjustment. The report attributes the difficulty decrease to two factors: first, the falling Bitcoin price making high-cost mining unprofitable; second, winter storms in the U.S. causing large mining farms in Texas and other areas to temporarily shut down. Some high-cost miners have sold Bitcoin to maintain operations or shifted to AI, intensifying the price pressure since the beginning of the year. The analysts believe that the exit of high-cost miners has stabilized, and they remain “positive” about the overall cryptocurrency market in 2026.