In June, the cost of producing bitcoin fell from ~$24,000 to ~$13,000, which could be a negative factor for digital gold pricing. Bloomberg writes about it, citing JPMorgan experts.

The bank’s strategists stated that the decrease in the cost of mining the first cryptocurrency is largely due to the reduction in electricity consumption. This occurs as miners install more efficient rigs to replace old hardware that is being shut down.

However, according to JPMorgan analysts led by Nikolaos Panigirtzoglou, what happened could hinder the growth of the cryptocurrency price.

“While this clearly helps miners to generate profits and reduces the pressure to sell their bitcoin reserves to potentially increase liquidity or reduce leverage, the reduction in production costs could be seen as a negative for the future price of BTC. “Some market participants perceive the cost of production as the lower end of the price range of a declining asset.”

Previously, JPMorgan analysts had predicted downward pressure on bitcoin prices from miners who needed liquidity in the third quarter.

Recall that in July, the bank’s strategists suggested that the worst was over for the crypto market.

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