Bitcoin prices rose 3.28% today (July 15), moving to $20,492.7.
Bitcoin’s uptick came after the Dow closed down 142 points on Thursday (July 14).
- The Dow Jones Industrial Average fell 142.62 points, or 0.46%, to close at 30,630.17.
- The S&P 500 was down 11.40 points, or 0.30%, to close at 3,790.38.
- The Nasdaq rose 3.60 points, or 0.03%, at 11,251.19 points.
J.P. Morgan revealed that the cost of mining bitcoin has dropped to $13,000 from $24,000 in early June and will put pressure on the bitcoin price going forward.
J.P. Morgan Chase has released a report showing that the cost of mining bitcoin in June 2022 has dropped by nearly 50% to $13,000, down from $24,000 in early June.
The J.P. Morgan strategist said the decline was due to a drop in electricity consumption according to data from the Cambridge Bitcoin Electricity Consumption Index (CBECI).
J.P. Morgan noted that this could be a factor depressing 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,” said a J.P. Morgan strategist.
Bitcoin miners have sold Bitcoins on a large scale in the second quarter of 2022. This is even said to be 100% of their May production.
However, lower costs may mean there is less pressure for miners to sell their bitcoins to stay liquid.
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Friday, July 15, 2022