According to JPMorgan, the Bitcoin mining network has become markedly more sensitive to price swings this year. The bank notes that a growing number of miners are now operating close to their break-even points, making the overall network hash rate and mining difficulty much more vulnerable to price changes.
Pressure mounts on mining economics
The bank’s latest assessment revealed that the beta coefficient showing the sensitivity of mining difficulty to Bitcoin prices has jumped to 0.62 over the last six months. This figure signals that the network’s computational power is reacting faster to shifts in market conditions.
JPMorgan analysts emphasized that for five consecutive months, the Bitcoin price has lingered below the average production cost, weakening mining profitability and forcing more miners to operate at the very edge of financial viability.
As one of the world’s largest investment banks, JPMorgan regularly publishes analysis on macroeconomics and the digital asset markets. The bank states that persistent sub-cost trading throughout 2026 is putting further pressure on sector profitability, deepening the strain on the industry.
Citing CoinShares data, JPMorgan’s report estimates that about 20 percent of miners are currently running at a loss. This situation is particularly tough for companies facing high energy and equipment costs, leaving them even more exposed to price volatility.
Hash rate and difficulty adjustments take the spotlight
Hash rate refers to the total computing power used to validate transactions and create new blocks in proof-of-work blockchains. JPMorgan highlights that when Bitcoin’s price falls below the production cost, higher-cost miners tend to shut down their equipment, which lowers the network’s hash rate and, consequently, reduces mining difficulty.
Quick glossary: Hash rate represents the total computing power in a mining network. Mining difficulty is a technical metric adjusted by the network to keep block creation at a consistent pace.
The bank underscores that mining difficulty dropped by 10 percent in the second week of June, marking the second drop of this scale this year. Even relatively minor movements in the price of Bitcoin are now producing noticeably sharper changes within the network.
| Indicator | Level |
|---|---|
| Estimated production cost | 78000 dollars |
| Reported Bitcoin price | 64700 dollars |
| Difficulty beta coefficient | 0.62 |
| Percentage of miners at a loss | 20 percent |
Miners ramp up Bitcoin sales
Due to mounting financial pressure, publicly traded mining companies reportedly sold more than 32000 BTC in the first quarter alone. This figure already exceeds their total Bitcoin sales reported for the entirety of 2025.
Analysts project that as long as Bitcoin trades below the estimated 78000 dollar production cost, heightened sensitivity in hash rate and mining difficulty is likely to persist.
Meanwhile, many mining companies are diversifying into artificial intelligence and high-performance computing to secure more stable, long-term revenues. The report notes that hosting contracts in these fields can offer more predictable income, but setting up AI-compatible facilities requires significant upfront investment and poses some operational risks.
