The financial services company JPMorgan Chase reports that the cost of mining Bitcoin from 24 thousand dollars Since early June to about 13 thousand dollars Dropped. Bloomberg explains in its report that this decline is likely due to the “red spring of digital currencies”, but it is not clear that it can improve the price of digital currencies.
The fall of the crypto market and the decrease in the price of Bitcoin and other digital currencies have had negative effects on other areas of this industry. One of them Cost Extraction Bitcoin According to the available reports, it has decreased significantly in the past few times.
Of course, despite the fall in the price of Bitcoin from its highest level in November of last year, which reduces the amount of electricity and processing power required for mining, a reduction in the cost of mining is also expected. Besides these things, summer heat waves may also stop the activity of some miners.
Despite this, JP Morgan strategists claim that this is actually due to miners using more efficient mining machines with the aim of making more profits.
The impact of Bitcoin mining decline on the market
Reducing mining costs to make Bitcoin more profitable, on the other hand, can stabilize the market. At the same time, some people consider the cost of mining Bitcoin as the price floor of this digital currency during the recession. Therefore, the reduction of this price floor can make the situation of the crypto market even worse.
The price of Bitcoin reached $70,000 in November last year before crashing this spring. In addition to the crypto market and the price of cryptocurrencies, this recession has also affected various entities such as crypto companies, the government of El Salvador, North Korea’s weapons program, and ransomware attacks. In this regard, the cryptocurrency lending platform Celsius recently declared bankruptcy.