JPMorgan: Bitcoin Above $85K Production Cost Could Reduce Miner Selling

Bitcoin production cost — JPMorgan analysts suggest that Bitcoin’s sustained price above its estimated production cost of $85,000 could alleviate selling pressure from miners.

The bank’s research indicates that the production cost, which includes electricity and other operational expenses, serves as a key threshold for miner profitability. When Bitcoin trades below this level, miners are often forced to sell more of their mined coins to cover costs, adding significant supply to the market.

Conversely, a price consistently above the $85,000 mark would improve miners’ financial health, potentially allowing them to hold a larger portion of their Bitcoin rewards rather than liquidating them immediately. This dynamic could reduce the constant sell-side pressure from one of the network’s largest natural sellers.

The analysis highlights the critical link between Bitcoin’s market price and the underlying economics of its proof-of-work security model. While the current price remains below this estimated threshold, the note outlines a potential bullish scenario where breaching and holding above it would structurally improve market supply conditions.