[JPMorgan: Bitcoin Production Cost Has Dropped from $90,000 at the Beginning of the Year to $77,000] According to The Block, JPMorgan analysts stated that their estimated Bitcoin production cost—historically regarded as a 'soft price floor'—has dropped from $90,000 at the beginning of the year to $77,000, primarily due to the recent decline in network hash rate and mining difficulty. Analysts noted that the recent drop in Bitcoin network hash rate has triggered the largest mining difficulty adjustment since China's mining ban in 2021, with a cumulative decrease of approximately 15% year-to-date. The reduction in difficulty has provided breathing room for miners still in operation, with efficient miners capturing the market share left behind by high-cost miners forced to shut down. Analysts observed a recovery in hash rate and expect production costs to rebound during the next difficulty adjustment. The report attributes the decline in difficulty to two factors: first, the drop in Bitcoin prices has rendered high-cost miners unprofitable; second, winter storms in the U.S. caused temporary shutdowns of large mining farms in states like Texas. Some high-cost miners have maintained operations or transitioned to AI by selling Bitcoin, exacerbating the price pressure since the beginning of the year. Analysts believe the exit of high-cost miners has largely stabilized and maintain a 'positive' outlook on the overall cryptocurrency market through 2026.