#BTC trades below the average total cost of mining (currently around $78,000) for the past 5 months. About 20% of all BTC miners are currently operating at a loss and are forced to sell BTC into the market to sustain their operations. Less efficient miners are shutting down their operations. As a result, the hash rate and mining difficulty are decreasing.

Last week, mining difficulty dropped by 10%, the second-largest decline since January of this year, indicating market stress.

The current weakness in the market may ultimately serve as a "contradictory indicator" for buying.

Previously, JPMorgan noted that the average cost of BTC mining usually served as a "bottom" for BTC. If the price fell below the cost, it was usually short-lived.