JPMorgan expects miners’ pressure on Bitcoin price to persist

Liquidity-strapped mining companies in the third quarter are still capable of exerting downward pressure on Bitcoin’s price. JPMorgan strategist Nikolaos Panigirtzoglou arrived at that conclusion, Bloomberg reports.

According to the expert, public mining companies account for about 20% of the hashrate. Many of them sold Bitcoin to cover operating expenses and to service debts. With more limited access to capital, private miners have also begun to take similar steps, the strategist said.

“The selling-off will continue into the third quarter if mining profitability does not improve. This has already manifested in May and June. There is a risk that the process will continue,” he wrote.

According to Panigirtzoglou, the cost of mining 1 BTC at the start of the year when BTC was at $18,000-$20,000 fell to around $15,000 by June, thanks to the deployment of more energy-efficient equipment.

Earlier, Arcane Research analysts calculated that cash flow from Bitcoin mining fell by 80% from its November 2021 peak — to two-year lows. In particular, the older Antminer S9s are already operating at a loss.

According to analysts, in May publicly traded mining companies for the first time sold all Bitcoin mined during the month. Typically, the share of coins sold ranged from 25% to 40%.

Follow ForkLog’s Bitcoin news on our

Подписывайтесь на ForkLog в социальных сетях