Bitcoin Under Pressure as Miners Struggle with High Production Costs

Bitcoin's price has been under pressure in recent days, and market watchers are pointing to several factors contributing to its decline. One key issue is the cost of production for miners, which JPMorgan estimates stands at around $78,000 per bitcoin. This is significantly higher than the current market price of about $62,500.

As a result, many miners are operating at a loss, with some 20% currently unprofitable. To make up for these costs, publicly traded miners have been selling more than 32,000 bitcoins in the first quarter alone, surpassing their sales from all of 2025.

The network is adjusting to this situation by reducing mining difficulty, which has fallen 10% in early June. This is the second decline of that size this year, and JPMorgan expects larger and more frequent adjustments as long as bitcoin stays below its production cost.