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Wall Street banking JPMorgan has not too long ago printed a report that implies that the Bitcoin manufacturing value has dropped 50% over the past month. Currently, the BTC manufacturing value stands at $13,000 down from the $24,000 value at the beginning of June 2022.

JPMorgan strategists led by Nikolaos Panigirtzoglou wrote that this drop comes amid the autumn in electrical energy use as per information from Cambridge Bitcoin Electricity Consumption Index.

The banking large notes that that is an effort y the miners to defend profitability and deploy environment friendly rigs. However, it may additionally function a serious impediment to any positive factors within the Bitcoin worth. The JPMorgan strategists wrote:

“While clearly helping miners’ profitability and potentially reducing pressures on miners to sell Bitcoin holdings to raise liquidity or for deleveraging, the decline in the production cost might be perceived as negative for the Bitcoin price outlook going forward. The production cost is perceived by some market participants as the lower bound of the Bitcoin’s price range in a bear market.”

Bitcoin Miner Capitulation

During the second quarter of 2022, Bitcoin miners have been on a selling spree. As the Bitcoin worth corrected a staggering 70% from its all-time highs in November 2021, miners had to offload extra amount so as to cowl their operational prices.

Last month, JPMorgan strategists stated that Bitcoin may additional witness promoting strain throughout the third quarter as properly. Miners are additional probably to liquidate their holdings going forward. Also, if the BTC manufacturing has truly gone to $13,000 as per JPMorgan, miners may need revenue to make on its new manufacturing.

On-chain information supplier Glassnode not too long ago shared its insights whereby it notes that long-term holder (LTH) capitulation. The report provides:

“There is an increased probability that a long-term holder (LTH) capitulation is underway. Bitcoin investors are not out of the woods yet”.

On the upside, Bitcoin (BTC) nonetheless has to cross its 200-day EMA at round $22,500 and maintain above that stage to resume the uptrend.

Bhushan is a FinTech fanatic and holds aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is repeatedly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and generally discover his culinary expertise.

The offered content material might embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty for your private monetary loss.