After the halving, the crypto community expected the hashrate to fall sharply.
In February, experts predicted that mining a single bitcoin will cost $42,000.
In response to a change in the bitcoin mining hashrate, JPMorgan has raised its primary estimate of the cost to produce one bitcoin from $42,000 to $45,000.
After the halving, the crypto community expected the hashrate to fall sharply as miners who couldn’t make a profit would leave the network. The team of analysts at JPMorgan headed by Nikolaos Panigirtzoglou released a report on Thursday stating that this is occurring, albeit at a slow pace.
The analysts stated:
“The current hashrate and power consumption put our central estimate of the bitcoin production cost to around $45,000, i.e., well below current prices” of around $65,000.
Hash Rate and Mining Efficiency
In February, experts predicted that mining a single bitcoin will cost $42,000. Therefore, they also predicted that, as the halving-induced excitement fades in April, the price of bitcoin would reach $42,000.
In response to a question about whether JPMorgan anticipates a price increase for bitcoin to $45,000 (the current estimate), Panigirtzoglou informed The Block that, although the current estimate is $45,000, it still maintains the $42,000 level for the medium term.
Panigirtzoglou stated:
“The production cost estimate is a function of the hashrate and mining equipment efficiency, which are in a state of flux post-halving. We get a $45,000 estimate at the moment (which is slightly different from the $42,000 we envisage as things settle over time), but this $45,000 current estimate would change as the hash rate and mining equipment efficiency evolve.”
Once mining efficiency and hash rate stabilise, the analysts anticipate a medium production cost target of $42,000. As an additional note, Panigirtzoglou said that things would need time to settle.
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