According to JPMorgan, the Bitcoin mining network has become significantly more sensitive to price movements this year. The bank noted that more miners are operating closer to breakeven, making the network’s total processing power and mining difficulty more sensitive to price changes.
Pressure has increased on the mining economy
In the evaluation published by the bank, it was stated that the beta coefficient, which shows the sensitivity of mining difficulty to the Bitcoin price, increased to 0.62 in the last six months. This level indicates that the network’s computing power responds more quickly to changes in market conditions.
JPMorgan analysts noted that the Bitcoin price being below the cost of production for five consecutive months has weakened the economics of mining, so more businesses are operating at the cost limit.
As one of the largest investment banks operating globally, JPMorgan publishes regular analyzes on the macroeconomy and digital asset markets. According to the bank, profitability pressure on the sector has deepened as Bitcoin trades below its estimated cost of production through 2026.
Citing CoinShares data, the report noted that it is estimated that approximately 20 percent of miners are currently making losses. This situation makes businesses especially those with high energy and equipment costs more vulnerable to price fluctuations.
Hashrate and difficulty adjustments highlighted
Hashrate refers to the total computational power used to confirm transactions and produce new blocks in a proof-of-work-based blockchain. According to JPMorgan, when the price falls below the cost of production, costly miners tend to shut down their devices. This reduces the processing power of the network and brings about a decrease in mining difficulty.
Mini dictionary: Hashrate shows the total computing power in a mining network. Mining difficulty is the technical level that is regularly adjusted by the network to keep the production of new blocks at a certain pace.
The bank emphasized that mining difficulty decreased by 10 percent in the second week of June, and that this was the second decrease on the same scale this year. It was stated that even relatively limited movements in the Bitcoin price now have more visible results in network activity.
| Indicator | Level |
|---|---|
| Estimated production cost | $78,000 |
| Bitcoin price mentioned in the news | $64,700 |
| Difficulty beta coefficient | 0.62 |
| Loss-making miner rate | 20 percent |
Miners increased Bitcoin sales
It was reported that, due to the financial pressure, publicly traded mining companies sold over 32,000 BTC in the first quarter of the year. According to the report, this amount exceeded the total sales of the companies in all of 2025.
Analysts expect high sentiment in hashrate and mining difficulty to continue as long as Bitcoin remains below its estimated production cost of $78,000.
On the other hand, many mining companies are turning to artificial intelligence and high-performance computing to diversify their income sources. The report stated that hosting contracts in this area can provide more stable and long-term income, but artificial intelligence compatible facility installation requires high capital and carries implementation risks.
