JPMorgan Says Bitcoin’s Rally Lessens Pressure On Crypto Miners

U.S. bank JPMorgan Chase (NYSE: $JPM) says the current rally in Bitcoin (CRYPTO: $BTC) is likely to provide some relief to companies that mine the cryptocurrency.

JPMorgan says Bitcoin's price has now moved above its estimated production cost of $85,000 U.S., potentially easing pressure on crypto miners and lessening the risk of forced selling.

Bitcoin had spent 280 days below the estimated average cost of producing one BTC using banks of powerful computers, according to JPMorgan crypto analyst Nikolaos Panigirtzoglou.

The analyst said Bitcoin's production cost has historically acted as a "soft floor" for its price.

When Bitcoin trades below that level, miners with high electricity and equipment costs turn unprofitable, often forcing them to sell Bitcoin, shutdown machines, or leave the market.

The crypto winter that began in October 2025 has forced many Bitcoin miners to pivot their operations to running more profitable and stable artificial intelligence (A.I.) data centres.

Panigirtzoglou notes that the last time Bitcoin's price was below its estimated production cost for a similar period was in 2018, when it stayed below that level for 224 days.

The bitcoin mining industry is now larger and more consolidated than it was in 2018, but the situation has still resulted in a retreat among miners of digital assets.

Lastly, Panigirtzoglou said that as miners move some or all of their operations toward A.I. computing, growth in the Bitcoin network's hash rate has slowed.

Hash rate has fallen about 19% from its peak in October 2025, while mining difficulty has declined 15%, concluded the analyst.

Hash rate refers to the speed and computing power needed to mine one Bitcoin.

BTC was trading at $84,500 U.S. on Sept. 25.