• Bitcoin has risen above JPMorgan’s estimated average mining cost of $85,000 after spending 280 days below that level.
  • Analysts believe this could reduce the risk of forced selling by miners if the price manages to hold above this level.

JPMorgan analysts noted that Bitcoin has risen above the estimated average mining cost of around $85,000 for the first time in 280 days. The last time the asset remained below this level for a comparably long period was in 2018—at that time, the period lasted about 224 days. The experts made this statement in a comment to The Block.

According to analysts, the mining cost of the first cryptocurrency has historically served as a “floor” for its price. When Bitcoin trades below that level for an extended period, miners with higher costs become unprofitable: they sell more coins, shut down their equipment, or leave the market altogether, JPMorgan explained.

Relief for Miners

During a prolonged period of low profitability, miners adapted: they relocated equipment to regions with cheaper electricity, sold old mining rigs, and put some of their capacity on standby.

“To the extent that this persists, the new environment will provide relief to Bitcoin miners, thereby reducing the risk of forced sales on their part,” analysts noted.

At the same time, Bitcoin has pulled back slightly and is currently trading around $84,000. Analysts also noted that the rally, which occurred despite the U.S. Senate’s failure to advance the CLARITY Act, is consistent with the behavior of investors closing out bearish positions.

Miners Are Shifting to AI — Hash Rate Is Falling

A separate topic in the report was the mining industry’s large-scale shift toward artificial intelligence. The Bitcoin network’s hash rate has fallen by approximately 19% from its October peak, and mining difficulty has decreased by about 15%. Many public mining companies have lowered their hash rate growth forecasts, as long-term AI contracts are accelerating the shift away from mining.

Experts explained that AI companies pay significant premiums for access to electricity and data centers equipped for high-performance computing. Revenue from AI is more predictable, stable, and higher per megawatt than revenue from Bitcoin mining—especially given the subdued prices of the asset throughout most of 2026. 

As a result, public mining companies are losing market share to private and state-owned operators, they added.

Ultimately, JPMorgan analysts point to an unexpected positive effect for the network itself. According to them, this structural shift will slow the growth of Bitcoin’s mining costs in the future (with the exception of halving periods) and will also help prevent excessive concentration of hash rate.

As a reminder, MARA CEO Fred Thiel previously stated that spending energy on data centers for AI is much more profitable than mining cryptocurrency.

The article “Bitcoin Exceeds Mining Cost for the First Time in 280 Days—Selling Pressure from Miners May Ease” first appeared on INCRYPTED.