The cost of electricity for one <a href="https://www.cryptoknowmics.com/news/btc-technical-analysis-will-bitcoin-prices-tumble-below-18k/" target="_blank" rel="noopener">Bitcoin</a> (BTC) has fallen from about $24,000 in early June to about $13,000 now, according to JPMorgan Chase &amp; Co.
<h2 class="c-title entry-title tittle">BTC Production Cost Drops 50% in a Month</h2>
According to a <a href="https://www.bloomberg.com/news/articles/2022-07-14/jpmorgan-says-bitcoin-cost-of-production-may-be-down-to-13-000#xj4y7vzkg" target="_blank" rel="nofollow noopener">report</a> from Bloomberg, strategists led by Nikolaos Panigirtzoglou, citing a note from the Cambridge Bitcoin Electricity Consumption Index, stated that the drop in the production cost comes amid the fall in electricity use.

According to the banking giant, this is an effort by the <a href="https://www.cryptoknowmics.com/news/sam-bankman-fried-open-to-buying-troubled-crypto-miners-next/" target="_blank" rel="noopener">miners</a> to protect profitability and deploy efficient rigs. However, it could also serve as a major obstacle to any gains in the Bitcoin price.
<blockquote><em>"While clearly helping miners' profitability and potentially reducing pressures on miners to sell Bitcoin holdings to raise liquidity or for deleveraging, the decline in the production cost might be perceived as negative for the Bitcoin price outlook going forward. The production cost is perceived by some market participants as the lower bound of the Bitcoin's price range in a bear market,"</em> the JPMorgan strategists wrote.</blockquote>
<h2>Bitcoin Miner Capitulation</h2>
During the second quarter of 2022, Bitcoin miners were on a selling spree. As the Bitcoin price corrected a staggering 70% from it's all-time highs in November 2021, forcing miners to offload more quantity in order to cover their operational costs.

Last month, strategists from JPMorgan stated that Bitcoin could further witness selling pressure during the third quarter as well where miners were likely to liquidate their holdings further ahead.

BTC Production Costs Fall from $24,000 to $13,000 in a Month: JPMorgan

The cost of electricity for one Bitcoin (BTC) has fallen from about $24,000 in early June to about $13,000 now, according to JPMorgan Chase & Co.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

BTC Production Costs Fall from $24,000 to $13,000 in a Month: JPMorgan

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