In June, the cost of producing bitcoin decreased from ~$24,000 to ~$13,000, which could be a negative factor for digital gold pricing. Writes about it Bloomberg with reference to JPMorgan experts.
The bank’s strategists noted that the fall in the cost of mining the first cryptocurrency is largely due to a reduction in electricity consumption. This comes as miners are deploying more efficient rigs to replace obsolete hardware being shut down.
However, according to JPMorgan analysts led by Nikolaos Panigirtzoglou, what is happening could become an obstacle to the growth of the cryptocurrency price.
“While this clearly helps miners make a profit and potentially reduces the pressure to sell bitcoin reserves to increase liquidity or reduce leverage, the cost reduction can be seen as a negative for the future price of BTC. Some market participants perceive the cost of production as the lower limit of the price range of an asset in a bearish phase,” experts said.
Earlier, JPMorgan analysts predicted downward pressure on bitcoin quotes from miners in need of liquidity in the third quarter.
Recall that in July, the bank’s strategists suggested that the worst for the crypto market was over.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
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In June, the cost of producing bitcoin decreased from ~$24,000 to ~$13,000, which could be a negative factor for digital gold pricing. Writes about it Bloomberg with reference to JPMorgan experts.
The bank’s strategists noted that the fall in the cost of mining the first cryptocurrency is largely due to a reduction in electricity consumption. This comes as miners are deploying more efficient rigs to replace obsolete hardware being shut down.
However, according to JPMorgan analysts led by Nikolaos Panigirtzoglou, what is happening could become an obstacle to the growth of the cryptocurrency price.
“While this clearly helps miners make a profit and potentially reduces the pressure to sell bitcoin reserves to increase liquidity or reduce leverage, the cost reduction can be seen as a negative for the future price of BTC. Some market participants perceive the cost of production as the lower limit of the price range of an asset in a bearish phase,” experts said.
Earlier, JPMorgan analysts predicted downward pressure on bitcoin quotes from miners in need of liquidity in the third quarter.
Recall that in July, the bank’s strategists suggested that the worst for the crypto market was over.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
