JPMorgan analysts have stated that the cost of Bitcoin (BTC) production has recently fallen significantly, reshaping the conditions in the mining sector. According to the bank’s assessment, the cost of Bitcoin production, previously around $90,000, has now dropped to $77,000.
Analysts point to two main factors in the decline in production costs: the withdrawal of some high-cost miners from the market and disruptions to mining operations due to winter storms in the US. As a result of these developments, the difficulty level on the Bitcoin network has recently decreased by 15%. According to JPMorgan, this decrease indicates the closure of miners, particularly those with high electricity costs.
However, it was stated that the network’s total processing power, or hashrate, has begun to recover, and production costs are likely to rise again after the next difficulty adjustment. JPMorgan emphasized that as hashrate recovers, competition will increase, and mining costs may see upward pressure.
On the other hand, the bank remains optimistic about its 2026 outlook for the crypto market. Analysts expect increased institutional capital inflows next year and regulations such as the Clarity Act, currently under consideration in the US, to bring clarity to the market.
JPMorgan also maintained its long-term outlook for Bitcoin, predicting that BTC could reach $266,000 in the long term.
*This is not investment advice.
