JPMorgan: Bitcoin production cost falls to $77,000 from $90,000 at the start of the year

ChainCatcher report, according to The Block, JPMorgan analysts stated that their estimated cost of Bitcoin production—long regarded as a "soft price floor"—has declined from $90,000 at the start of the year to $77,000, primarily due to recent decreases in network hash rate and mining difficulty. The analysts noted that the recent drop in Bitcoin network hash rate triggered the largest mining difficulty adjustment since China’s 2021 mining ban, with a cumulative reduction of approximately 15% so far this year. The difficulty reduction has provided relief for remaining miners, allowing efficient operators to capture market share previously held by high-cost miners forced to shut down. The analysts have observed a rebound in hash rate and expect production costs to rise again at the next difficulty adjustment. The report attributes the difficulty decline to two factors: first, the fall in Bitcoin’s price has rendered high-cost mining operations unprofitable; second, winter storms in the U.S., particularly in Texas, caused temporary shutdowns at large mining facilities. Some high-cost miners have sold Bitcoin to sustain operations or shifted toward AI, exacerbating price pressure since the beginning of the year. The analysts believe the exit of high-cost miners has stabilized and maintain an “optimistic” outlook for the broader cryptocurrency market in 2026.