JPMorgan: BTC miner profitability is worsening

Bitcoin's price has remained below the estimated cost of production for miners for five consecutive months, increasing pressure on their operations, JPMorgan noted in a report cited by The Block. The bank explained that this year, BTC hashrate and mining difficulty have become more sensitive to price fluctuations. Over the past six months, the correlation between mining difficulty and the price of BTC has increased, with a significant number of miners operating near their break-even point. This makes them more likely to decide whether to run their rigs based on price changes. When the price of BTC falls below the cost of production, miners with high operating costs are forced to shut down their equipment. This leads to a decrease in hashrate and a subsequent downward adjustment in mining difficulty. According to the report, this phenomenon was observed in the second week of June, when mining difficulty fell by 10%.