The cost to produce a single bitcoin
The cost to produce one single bitcoin has fallen to about $13,000 from around $20,000 at the beginning of June as miners are struggling in the bear market. Mining effeciency is constantly increasing however.
Pressure in the market
- There is currently less pressure for miners to sell their bitcoin holdings, the drop in production costs thus far could be viewed as a negative indicator for the bitcoin price.
- “The decline in the production cost might be perceived as negative for the bitcoin price outlook going forward to the extent that the production cost is perceived by some market participants as the lower bound of the bitcoin’s price range in a bear market.”