727 FinancePANews reported on September 25 that according to The Block, JPMorgan analysts said that Bitcoin once exceeded its estimated average production cost of approximately US$85,000 during this week’s rise, ending the previous 280 consecutive days of being below this level. If this price level is maintained, it will ease the pressure on miners and reduce the risk of being forced to sell.
Analysts said production costs have historically been seen as a "soft floor" for Bitcoin prices. When the cost is lower than this for a long time, miners with high electricity and equipment costs may fall into losses, and then sell their coins, shut down, or exit the market. The last time a similar long period of being below production costs occurred in 2018 (about 224 days), when the withdrawal of high-cost miners led to a decline in the computing power and difficulty of the entire network. Analysts note that even though mining is now larger and more industrialized, the same adjustment mechanisms still apply. If the price continues to stand above the cost line, it will reduce the pressure on miners to sell coins.