20% of Bitcoin Miners in the Red, According to JPMorgan
A growing part of the bitcoin industry is currently going through a difficult period. According to a harsh finding published by JPMorgan on June 18, 2026, nearly one in five miners would no longer be profitable under current crypto market conditions. While the sector was hoping for a lull, the network’s mathematical reality proves ruthless for less efficient players.
In brief
- JPMorgan estimates that about 20% of bitcoin miners are currently unprofitable.
- The production cost is estimated at $78,000 while BTC trades around $62,500.
- Mining difficulty has dropped twice by 10% since the beginning of the year.
When mining bitcoin costs more than it earns
Led by analyst Nikolaos Panigirtzoglou, the JPMorgan report is clear: between 15 and 20% of bitcoin miners worldwide are currently operating at a loss. The main reason? A violent gap between operating costs and market price.
The gap between the BTC price (around $62,900 at the time of writing this article) and the actual production cost (estimated at $78,000) has indeed persisted for more than five months. For many crypto experts, this is no longer a temporary anomaly. It is rather the new economic reality for the bitcoin mining industry.
That’s not all! According to the note published by JPMorgan, hashprices also stagnate between $28 and $30 per PH/s/day. This is a key indicator to measure the profitability of BTC mining. For operators running aging hardware or facing high electricity costs, this level is simply insufficient.
32,000 BTC sold in a single quarter
Most analysts agree: the most worrying signal may come from the sales figures. The publicly traded mining companies indeed liquidated more than 32,000 BTC in the first quarter of 2026, just to cover their operating expenses. This volume exceeds the entire bitcoin sales of the same actors throughout 2025.
Operators who held onto their coins as a long-term bet are now forced to sell urgently. This simply means that financial pressure is real.
The bitcoin mining difficulty also dropped by 10% in June, for the second time this year. This means machines are being turned off, and players are leaving the market.
The Bitcoin ecosystem is more fragile than it appears
JPMorgan points out another important technical detail: the beta between the bitcoin price and mining difficulty reaches 0.62 over the last six months. Concretely, every 1% drop in BTC leads to a 0.62% contraction in mining difficulty. This sensitivity level is higher than historical averages. Since the last halving, bitcoin mining reacts more violently to price fluctuations.
According to CoinShares, machines consuming electricity above $0.06/kWh are now unprofitable. On the other hand, recent and efficient infrastructures resist. Others absorb losses or shut down.
In any case, JPMorgan’s alert highlights the fragility of a part of the Bitcoin ecosystem. It remains to be seen whether this consolidation phase will mark a simple adjustment or the beginning of a new sector transformation.
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.