This article makes some bold claims:
The stress is not merely statistical, as JPMorgan analysts estimate bitcoin has traded below its average production cost of roughly $78,000 for five consecutive months, leaving about 20% of miners operating at a loss.
I tried to find some explanation of how they calculate this "average production cost" number, but was unable to find any details. So I'm not sure I trust it, but I certainly can believe that miners are hurting -- and there are other metrics:
Onchain analysts see the same tension. Cryptoquant’s Miner Capitulation Index has climbed above 65, a level analyst Axel Adler Jr. described as evidence of building stress, though he emphasized it remains below the extremes of the 2022 bear market, when miner capitulation moved hand in hand with a 65% drawdown in bitcoin’s price.
How can the production cost be 78k if only 20% of miners are operating at a loss?
maybe it has to do with how they are computing this "average production cost" number -- it must be the case that many miners are producing bitcoins for much less than $78k.
Yes but I am sure a lot of miners are hurting at these prices.
I’m hoping this translates into cheap rigs for the coming winter
I have been thinking this myself!
deleted by author
good