Bitcoin News

Story: JPMorgan Flags 20% of Bitcoin Miners Underwater as 32,000 BTC Gets Dumped

By Dan Saada

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Why Miners Keep Dumping BTC. The sell-off makes sense once you look at the numbers.

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Energy Costs and the Efficiency Trap. Here's the other ugly piece. Miners facing margin pressure have two theoretical escape routes: cut…

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Long-Term Viability Questions Mount. JPMorgan's warning isn't just about this quarter. The real concern is what happens if prices stay…

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Bitcoin mining is bleeding. JPMorgan analysts put it bluntly: roughly one in five bitcoin miners is operating at a loss right now, and the pain has been running for five straight…

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The core problem is simple. Bitcoin's price has stayed below what it actually costs to produce the coin — and that gap hasn't closed.

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Five months underwater. That's the streak.

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The sell-off makes sense once you look at the numbers. When revenue per coin falls below the cost to mine it, you either sell your reserves or you shut rigs down.

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And the volume matters. When miners dump that much BTC onto the market, it adds supply at exactly the wrong moment.

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The broader mining sector isn't uniformly wrecked. Some operations run on cheap hydro power or locked-in energy contracts that give them a cushion.

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Here's the other ugly piece. Miners facing margin pressure have two theoretical escape routes: cut energy consumption or upgrade to more efficient hardware. Both cost money.

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More context: Bitcoin OP_RETURN Surge Pushes Network Activity Toward All-Time Highs

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So miners end up stuck. They can't easily reduce costs without spending, and they can't spend without cash, and they can't generate cash without selling bitcoin, which suppresses…

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Energy costs remain the biggest single variable. Mining is an energy-intensive business by design, and electricity prices have stayed elevated in many markets.

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JPMorgan's warning isn't just about this quarter. The real concern is what happens if prices stay depressed. A few weeks of thin margins is survivable.

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That kind of shakeout isn't necessarily bad for the miners who survive — less competition, same block reward — but the path there is painful.

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