As expected, unprofitable Bitcoin miners are starting to exit the network after the halving. This is a relief for the remaining miners, as the cost of producing a single Bitcoin is lower. However, JPMorgan said much of its performance depends on the price of Bitcoin, and it still faces some headwinds in the short term. “Given the current hash rate and power consumption, the central estimate for the production cost of Bitcoin is approximately $45,000, which means that the current “It's well below the price.” Bitcoin is currently trading at around $66,000 after rising 7% earlier this week. However, he added, “At this point, we see no room for the price of Bitcoin to rise, and if anything, we expect some headwinds in the short term.” Specifically, the global market strategist noted that: JPMorgan's CME Bitcoin futures position proxy still suggests it is overbought. Bitcoin's price remains above JPMorgan's volatility-adjusted comparison to gold of $45,000. This year, despite a “resurgence in virtual currency prices,” venture capital funding for virtual currency companies has been suppressed. Following significant capital outflows in April, inflows into Bitcoin ETFs have been limited this month. 'Weak demand' after Hong Kong approves spot ETFs for Bitcoin and Ether. The withdrawal of some miners from the Bitcoin network has resulted in a decrease in Bitcoin's hashrate, or the total computational power required by miners to mine Bitcoin and process network transactions. This was expected to happen after the April halving, which reduced a key source of income for Bitcoin miners. This decline was slowed by a temporary spike in transaction fees, miners' other source of income. However, once that income disappeared, unprofitable miners were forced out. “This highlights the continuing challenges Bitcoin miners face in maintaining a sustainable revenue stream, especially in the post-halving environment,” Panigirtzoglou said. Ta. This is especially true with the slump in Bitcoin prices, which have been trading primarily between $60,000 and $70,000 since March. A miner has two incentives for mining. One is the transaction fee that the sender voluntarily pays for quick settlement, and the other is the mining reward. The mining reward for each newly created Bitcoin during the halving decreased from 6.25 to 3.125. The incentive initially started with him 50 Bitcoins. “There is a natural feedback loop in the Bitcoin price,” Panigirtzoglou said. “The more the Bitcoin price falls, the more unprofitable miners will be pressured to exit the Bitcoin network, and the greater the consequences.”[ing] Decrease in hash rate and Bitcoin production costs. ”
