Home CryptoBitcoin The reduced cost of producing Bitcoin may hurt the price of the leading digital asset

The reduced cost of producing Bitcoin may hurt the price of the leading digital asset

by Paul Ebeling

#crypto #bitcoin #mining

$BTCUSD $JPM

“JPMorgan says the reduced cost of producing Bitcoin may hurt the price of the leading digital asset”–Paul Ebeling

According to a new report, JPMorgan analysts say Bitcoin’s cost of production has dipped from $24,000 in June to $13,000 now, a decrease that may not be so great for the Top crypto asset by market cap’s price.

Strategists led by Nikolaos Panigirtzoglou find that the lowered cost of production is most likely due to a decline in electricity use, which they say is related to BTC miners deploying more efficient mining rigs rather than less-efficient miners leaving in droves.

“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.”

Source: JPMorgan

Last month, the banking giant’s strategists noted the crypto industry’s latest widespread downturn may soon be over as the market’s deleveraging process is nearing its end.

Bitcoin is changing hands at $21,286.01 at time of writing, a 3.6% increase during the last 24 hrs and a 18% uptick from its seven-day low of $17,760.

A tip of my hat to sovereign individuals with satoshis and Bitcoin in cold storage with our firm. Click here

Check Price Action

Have a prosperous weekend, Keep the Faith!

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.
CLOSE