JPMorgan: Bitcoin’s Production Cost is $45,000
JPMorgan has revised its central estimate for the cost of Bitcoin production to $45,000 from the prior projection of $42,000, attributing this change to fluctuations in the Bitcoin mining hashrate.
In a report released on Thursday, JPMorgan analysts, led by Nikolaos Panigirtzoglou, stated:
“We previously anticipated a significant drop in the hashrate post-halving as unprofitable Bitcoin miners exit the network. This appears to be happening, albeit with some delay.”
They noted that the current hashrate and power consumption have led them to estimate the bitcoin production cost at approximately $45,000, which is still well below the current market price of around $65,000.
Back in February, these analysts had estimated the cost of producing one Bitcoin to be $42,000 and set a price target of $42,000 for Bitcoin once the halving-induced enthusiasm wanes after April.
