Bitcoin has surged in recent days, surpassing $80,000 and currently trading around $80,000-$85,000.
At this point, US banking giant JPMorgan pointed out a different picture for BTC.
According to JPMorgan, the fact that the Bitcoin price remains above its estimated production cost of around $85,000 suggests that selling pressure from miners may ease.
Risk of Miners Being Forced to Sell Bitcoin May Decrease!
According to The Block, a team of JPMorgan analysts led by Nikolaos Panigirtzoglou calculated an average production cost of approximately $85,000 for Bitcoin in their latest assessment of the cryptocurrency market.
At this point, analysts noted that Bitcoin’s price remaining above approximately $85,000 could alleviate financial pressure on miners and mitigate the risk of miner selling in the market.
Analysts said that BTC had been trading below its average production cost for 280 days before this week’s sharp rise. It was noted that with Bitcoin surpassing its production cost of approximately $85,000, the profitability outlook for miners could also change.
JPMorgan analysts stated that Bitcoin’s production cost has historically acted as a “soft floor” for its price. When the price remains below this level for an extended period, it negatively impacts the profitability of miners, especially those with high electricity and equipment costs.
Therefore, according to analysts, if Bitcoin remains consistently above the $85,000 level, miners may no longer need to sell their Bitcoins to cover operational expenses. This could help mitigate the risk of forced selling in the market.
*This is not investment advice.
