As noted by the US banking giant JPMorgan, the price of Bitcoin is clearly struggling.
According to JPMorgan, it has estimated that the cost of production for one Bitcoin has dropped to just $13,000.
The decrease is mainly due to the decrease in electricity consumption.
On the one hand, this drastic reduction in electricity consumption is a positive development, as miners are now less likely to sell their holdings to pay off debts with the proceeds.
On the other hand, however, this does not bode well for the Bitcoin course.
JPMorgan has calculated the intrinsic value of Bitcoin based on its production costs. In May, the largest US bank by total assets under management estimated the fair value of Bitcoin at $ 38,000.
As the analyst Nikolaos Panigirtzoglous explained, the cost of production is used to estimate the lowest possible level for the Bitcoin price during prolonged market downturns. The lower the price falls, the more bearish the outlook on the BTC price becomes, although it has reduced the possibility of further capitulation of miners.
Panigirtzoglou predicted that Bitcoin would likely stop in the third quarter as miners would sell their holdings.
Last week, the Bitcoin hashrate fell below 200 EH/s, falling only to 178,44 EH/s.
BTC’s Difficulty, which measures how difficult it is for miners to find new coins, is on track to record its third consecutive decline in about a week.
