According to the assessment published by JPMorgan, Bitcoin has been trading below its cost of production for the last five months. While the bank calculates that producing 1 Bitcoin costs approximately 78 thousand dollars, the market price of the asset is approximately 62 thousand 500 dollars. This situation increased the pressure especially on miners with weaker cost structures.
Pressure on miners increased
In the bank’s note, based on CoinShares data, it was stated that approximately 20% of miners were working at a loss. Public mining companies, which had difficulty meeting their operating expenses, sold more than 32 thousand Bitcoins in the first quarter of the year. This amount exceeded the amount of Bitcoin sold in all of 2025.
JPMorgan stated that Bitcoin has been trading below its production cost for five months, which squeezed miners and forced some to sell.
As the gap between revenue and cost in mining narrows, it appears that businesses, especially those with high electricity and equipment costs, are becoming more fragile. The main element that stands out in the news is that the price remaining below the cost for a long time can eliminate weaker players in the sector.
Network difficulty level lowered
The Bitcoin network responds to this pressure with automatic mechanisms. When the price falls below the cost of production, miners operating at higher costs turn off their devices. As a result, the total computing power that ensures the security of the network, that is, hashrate, decreases and the mining difficulty is set to a lower level.
Mini dictionary: Hashrate refers to the total computing power that secures the Bitcoin network. Mining difficulty is the setting that determines how difficult it is to produce new blocks and is automatically updated by the network approximately every two weeks.
This mechanism came into effect at the beginning of June. Mining difficulty decreased by 10%. This was recorded as the second decrease of the same magnitude seen during the year.
Reaction to price movements accelerated
According to JPMorgan, miners now react to price changes faster than in the past. The bank stated that the sensitivity of the difficulty level to prices has increased, with more businesses operating closer to the break-even point and therefore devices being turned on and off more frequently depending on price movements.
The bank assessed that as long as Bitcoin remains below its production cost, difficulty adjustments on the network may become larger and more frequent.
In this context, it is predicted that as long as the Bitcoin price remains below the production cost, more significant fluctuations may occur in the network. Although JPMorgan took a cautious approach to the overall outlook, it also pointed out that weak sentiment in the sector could create a contrary signal. According to the bank, this chart can be read in the same direction as signs of accumulation such as large investor purchases during the month and a decrease in reserves in the stock markets.
