BTC Miners Rejoice, The Cost of Mining Bitcoin Has Reached a 10-month Low

Even though inflation has caused energy prices to reach incredible highs, the cost to mine a single Bitcoin has reached 10-month lows. Thanks to increased rig efficiency, BTC mining difficulty has dropped by 6.7% since its peak difficulty back in May.

Nikolaos Panigirtzoglou, a strategist at JPMorgan said BTC production costs have (on average) fallen from $24,000 in the beginning of June to around $13,000 per coin today, its lowest average cost since September of 2021.

The last time BTC mining costs were this low, Bitcoin was trading near $50,000 before running up to $68,990 by early November 2021.

Lower BTC production costs may lead to more miners holding Bitcoin (rather than selling), improved profitability, and fewer BTC available on the market….

Leading to a potential new Bitcoin bull market.

Cambridge University’s Bitcoin Energy Consumption Index shows the drop in production costs may correlate to a decline in mining energy consumption. Cambridge reports a 33% decline in energy consumption over the past month, which could indicate that newer rigs are indeed consuming less power.

While this is great news for Bitcoin miners and mine hosting companies, the industry has been, overall, hit with increased energy prices and decreasing BTC prices since the beginning of the year.

But, if the lower cost to mine BTC holds, the likelihood of better profitability, industrywide, is strong.

Read the full analysis, HERE