tl;dr
JPMorgan estimates the current mining cost for bitcoin miners at around $45,000, with the launch of the Runes protocol preventing an immediate hashrate fall post-halving. The bank sees no near-term upside in bitcoin price due to various headwinds. The delay in hashrate drop was attributed to the Run...
JPMorgan Insights on Bitcoin Mining and Runes Protocol JPMorgan Estimates Bitcoin Mining Cost at $45,000
JPMorgan estimates the current mining cost for bitcoin miners at around $45,000, with the launch of the Runes protocol preventing an immediate hashrate fall post-halving.
The bank sees no near-term upside in bitcoin price due to various headwinds.
Key Points:
- JPMorgan estimates that the current mining cost for bitcoin miners is around $45,000.
- The launch of the Runes protocol meant the hashrate didn’t immediately fall post-halving as expected, the report said.
- Due to several headwinds, the bank doesn't see any upside in the bitcoin price in the near term.
The current hashrate and power consumption on the Bitcoin (BTC) network imply an estimated mining cost of about $45,000, down from above $50,000, JPMorgan (JPM) said in a research report on Thursday.
The delay in hashrate drop was attributed to the Runes protocol's temporary spike in transaction fees, providing a short-lived boost to miner revenue post-halving.
As the Runes hype faded and the temporary boost for miners dissipated, power consumption on the network has fallen more than the hashrate, indicating the exit of unprofitable miners.
JPMorgan anticipates limited upside for bitcoin in the near term due to identified headwinds and the disappearing retail impulse.
More about JPMorgan Chase & Co
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. It is incorporated in Delaware and is considered a Bulge Bracket bank, providing various investment banking and financial services. As one of America's Big Four banks, along with Bank of America, Citigroup, and Wells Fargo, it is recognized as a universal and custodian bank. The J.P. Morgan brand encompasses investment banking, asset management, private banking, private wealth management, and treasury services divisions.
Industry: Finance
Sector: National Commercial Banks
Market Cap: 580.39 billion
P/E Ratio: 12.2
EPS: 4.25
Dividend Yield: 1.57%
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Volume: 150,000,992
Revenue: 191.55 billion
Net Profit Margin: 8.3%
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