JPMorgan strategist Nikolaos Panigirtzoglou has said mining companies in need of liquidity in the third quarter could continue to put downward pressure on the Bitcoin price, Bloomberg has reported.
According to the expert’s calculations, the share of public mining companies accounts for about 20% of the crypto’s hashrate. Many of these have sold Bitcoins in order to cover operating expenses and loans for services.
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In light of the more limited access to capital, private mining companies have also taken similar steps.
He has said:
“Offloading of Bitcoins by miners, in order to meet ongoing costs, could continue into Q3 if their profitability fails to improve. That offloading has likely already weighed on prices in May and June, though there is a risk that this pressure could continue.”
According to Panigirtzoglou, the cost of mining 1 BTC from $18,000 to $20,000 at the beginning of the year dropped to $15,000 in June due to the introduction of more energy-efficient equipment.
Analysts at Arcane Research have previously estimated that Bitcoin mining cash flow has declined by 80% compared to the November 2021 peak, to levels of two years ago.