JPMorgan: Bitcoin Production Costs Fall to $77,000

JPMorgan analysts have reported a decrease in Bitcoin production costs from $90,000 at the start of the year to $77,000, driven by a decline in network hashrate and mining difficulty. This reduction, the largest since the 2021 Chinese mining ban, has seen a cumulative 15% decrease year-to-date, offering relief to remaining miners and allowing efficient operators to capture market share.

The drop in mining difficulty is attributed to unprofitability for high-cost miners due to falling Bitcoin prices and temporary shutdowns of large mining farms in the U.S. caused by winter blizzards. Some high-cost miners have sustained operations by selling Bitcoin or shifting to AI, adding to price pressure. Despite these challenges, analysts remain optimistic about the cryptocurrency market in 2026.