Bitcoin Climbs, JP Morgan Says BTC Trades Below Mining Costs
Bitcoin (BTC) price is up 0.78% in 24 hours to $63,225, slightly outperforming a broadly flat crypto market, primarily driven by reduced forced-selling pressure.
BTC staged a rebound after a sharp drop in derivatives liquidations, which cleared leveraged bets and reduced immediate selling pressure, traders said.
The total US dollar value of Bitcoin liquidations over 24 hours fell 75.75% to $35.23 million. This significant drop indicates a clearing of over-leveraged positions that had been amplifying downside moves, allowing for a modest technical bounce from the $62,300 support level.
The market absorbed a wave of forced selling, reducing a major source of immediate downward pressure. Bitcoin’s price action remains tightly linked to traditional markets, with a 7-day correlation of 0.81 to the S&P 500.
While U.S. spot Bitcoin ETFs saw $90.66 million in net outflows on June 19, counterbalancing narratives emerged, including Franklin Templeton’s filing for a dividend-reinvestment Bitcoin ETF and reports of firms like Cardone Capital making strategic purchases.
The uptick wasn’t driven by a single catalyst but by its role as a macro asset, with structural adoption stories providing a floor. The immediate path hinges on Bitcoin defending the $62,000–$62,300 support zone, which was tested multiple times on June 19.
JPMorgan says Bitcoin mining economics have deteriorated as BTC trades about 19% below its estimated $78,000 production cost, forcing public miners into record coin sales and rendering roughly 20% of the industry unprofitable.
Bitcoin has traded below the estimated cost to mine it for five straight months, according to JPMorgan analysts, leaving roughly one in five miners unprofitable and pushing publicly listed operators to sell a record volume of coins.
In a client note circulated this week, analysts led by managing director Nikolaos Panigirtzoglou said bitcoin mining economics have “worsened” in 2026.
JPMorgan places the current all-in production cost of bitcoin at about $78,000, a figure derived from electricity, hardware depreciation, and overhead expenses across public miners.
With bitcoin trading near $63,000, the gap between the spot price and the breakeven price has created a sustained squeeze across the sector.
The financial strain has pushed publicly traded miners into a corner. Operators including MARA, CleanSpark, Riot Platforms, Cango, Core Scientific, and Bitdeer sold a combined 32,000 bitcoin in Q1 2026 alone to fund operating expenses, according to data from TheEnergyMag cited in the JPMorgan report.
The bias is neutral-to-bullish above support, but conviction remains low in the absence of a clear macro catalyst. A daily close above $63,800 to confirm short-term bullish momentum, or a break below $62,000 to renew bearish pressure.
Bitcoin’s minor gain reflects a market catching its breath after leveraged washouts, with its direction still dictated by broader macro sentiment and traditional market flows.
