Cost to mine Bitcoin falls to $13,000: JP Morgan

What

The cost of mining one Bitcoin has fallen from $24,000 to $13,000 over the last month, according to JP Morgan

Why

The fall is due to a drop in global electricity use as energy prices have soared

What next

This could boost mining profits for now, as well as deleveraging the market, JP Morgan analysts said

The story

While production costs are down, this creates a disparity between the price of mining at around $13,000 and Bitcoin’s current price range at around $20,000, where it has hovered over the last few weeks. Although this could have a negative effect on the price, JP Morgan analysts say this is partly down to miners rolling out more efficient mining machines.

JP Morgan has previously said that increased sell pressure from miners could help them to deleverage Bitcoin positions and reduce operations costs. 

Last month, mining giant Core Scientific sold most of its Bitcoin holdings so it could invest in new machines and repay debts. This shows some miners are taking the long view on current market conditions and choosing to invest in their infrastructure for the next market cycle.