The Bitcoin mining sector is facing increasing pressure as revenues continue to decline and production costs rise, at a time when Bitcoin is trading at levels below the estimated average mining cost by JPMorgan, putting a segment of miners under mounting financial strain.

Data showed that Bitcoin mining revenues continued to decline for most of last year, with the seven-day moving average of daily revenue falling to around $30 million, compared to more than $50 million last summer. Transaction fee contributions also dropped to less than $250,000 per day, making them a very limited part of total mining rewards compared to block rewards.
Bitcoin is currently trading near the $62,000 level, while JPMorgan estimates the production cost of the coin at around $78,000, a gap that has persisted for nearly five consecutive months, making it the longest period in the current cycle during which the price has traded below the average production cost.