Bitcoin mining costs $78K per coin, according to JPMorgan. The bank estimates that production cost is well above the roughly $62,500 the asset currently fetches.
Consequently, about a fifth of miners are now operating at a loss.
Why Bitcoin mining costs $78K matters
Bitcoin has spent five straight months trading below its production cost. Therefore, this squeeze is forcing some miners to sell. JPMorgan cited CoinShares data showing that about 20% of miners are now unprofitable.
Specifically, publicly traded miners sold more than 32,000 bitcoin in the first quarter. That is more than they offloaded in all of 2025. These sales were necessary to cover operating costs.
The network adjusts on its own
The network is adjusting automatically. When the price drops below cost, higher‑cost miners power down. Consequently, the hashrate (total computing power securing the network) falls. Then, mining difficulty resets lower.
This played out in early June. Specifically, difficulty dropped 10%, marking the second decline of that size this year.
Miners react faster than before
JPMorgan says the sensitivity of difficulty to price has climbed. Why? Because more operators are sitting near breakeven. Therefore, they flip machines on or off as prices move. The bank expects larger and more frequent adjustments for as long as bitcoin stays below its production cost.
One upside signal
The outlook is cautious, but JPMorgan flags one upside. Specifically, the weak sentiment around the sector could itself prove a bullish contrarian signal. This echoes the run of accumulation readings this month, from whale buying to falling exchange reserves.