[JPMorgan: Selling Pressure from High-Cost Miners and Strategy Are Key Factors Behind Bitcoin's Decline] Odaily Planet Daily News – JPMorgan Managing Director Nikolaos Panigirtzoglou and his team pointed out in a report on Wednesday that the recent sustained pressure on Bitcoin's price mainly stems from two factors: the recent decline in Bitcoin network hash rate and mining difficulty, and the latest developments surrounding Strategy. Analysts stated that the drop in hash rate and mining difficulty reflects two forces at play: China's reaffirmation of its ban on Bitcoin mining following a surge in private mining activities, and the squeeze on profits caused by declining Bitcoin prices and rising energy costs, leading high-cost miners outside of China to exit the market. Although a decline in hash rate typically increases miners' revenue, analysts noted that "Bitcoin's price continues to hover below its production cost," resulting in selling pressure on this first and largest cryptocurrency. JPMorgan analysts have currently revised their estimate of Bitcoin's production cost down to $90,000, lower than last month's $94,000. According to analysts, this update is based on an electricity price assumption of $0.05 per kilowatt-hour, and for high-cost producers, every $0.01 per kilowatt-hour increase in electricity price adds $18,000 to production costs. JPMorgan's report stated: "Due to rising electricity costs and falling Bitcoin prices squeezing profits, some high-cost miners have been forced to sell Bitcoin in recent weeks." Nevertheless, analysts emphasized that miners are not the primary drivers of Bitcoin's next price movement. Instead, they believe that Strategy's balance sheet and its ability to avoid selling Bitcoin are the key factors. (The Block)