JPMorgan flags signs of potential Bitcoin price decline.

In June, the cost of producing Bitcoin fell from around $24,000 to around $13,000, which could be a negative factor for the pricing of digital gold. Bloomberg reports, citing JPMorgan’s experts.

The bank’s strategists noted that the decline in the cost of mining the first cryptocurrency is largely due to reduced electricity consumption. This comes as miners deploy more efficient rigs in place of decommissioned, outdated equipment.

However, JPMorgan analysts led by Nikolaos Panigirtzoglou say the development could pose a hurdle to Bitcoin’s price.

“Although this clearly helps miners to earn profits and potentially reduces the pressure to sell Bitcoin reserves to boost liquidity or reduce debt burdens, the fall in production costs can be seen as negative for BTC’s future price. Some market participants view the cost of production as the floor of the asset’s price range in a bear market,” the experts said.

Earlier, JPMorgan analysts forecast downward pressure on Bitcoin prices from liquidity-constrained miners in Q3.

Earlier, in July, the bank’s strategists suggested that the worst for the crypto market was behind us.

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