JPMorgan spoke about the signs of a potential decline in the price of bitcoin

In June, the cost of Bitcoin production decreased from ~$24,000 to ~$13,000, which could be a negative factorfor digital gold pricing. Bloomberg writes about this, citing JPMorgan experts.

The bank's strategists noted that the fall inmining of the first cryptocurrency is for the most part associated with a reduction in electricity consumption. This comes as miners are deploying more efficient rigs to replace obsolete hardware being shut down.

However, according to JPMorgan analysts led by Nikolaos Panigirtzoglou, what is happening could become an obstacle to the growth of the cryptocurrency price.

«Although this clearly helps miners getprofits and potentially reduces pressure to sell Bitcoin reserves to increase liquidity or reduce leverage, lower costs can be seen as negative for the future price of BTC. Some market participants perceive the cost of production as the lower limit of the price range of an asset in a bearish phase,” experts said.

Earlier, JPMorgan analysts predicted downward pressure on bitcoin quotes from miners in need of liquidity in the third quarter.

How the collapse of the price of bitcoin affected large miners and what will happen next

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

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