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JPMorgan Says Miner Losses Mount as Bitcoin Trades Well Below Production Cost

Persistent weak prices have pushed some operators to power down machines, creating added selling pressure that could keep volatility high.

Overview

  • JPMorgan's report, published June 18, found Bitcoin has traded below its estimated production cost of about $78,000 for five straight months while market prices sit near $62,500.
  • The bank estimates roughly 15–20% of global miners are now unprofitable and notes that hashprice — mining revenue per unit of power — is only about $28–$30 per PH/s/day.
  • Publicly traded miners sold more than 32,000 BTC in Q1 2026 to cover operating costs, a level that exceeded their total sales for all of 2025 and added supply to a weak market.
  • Mining difficulty fell about 10% in the second week of June, the second similar drop this year, which signals that higher-cost miners are unplugging equipment and reducing hashrate.
  • JPMorgan measured a 0.62 beta between price and difficulty, which means difficulty now reacts more to price swings and supports the bank’s caution that miner distress could prolong downside pressure.