The Bitcoin mining sector is facing increasing pressure as revenues continue to decline and production costs rise, while Bitcoin trades at levels below the estimated average mining cost from JPMorgan Chase, putting a segment of miners under growing financial strain.

Data shows 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 over $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 returns relative to block rewards.

Bitcoin is currently trading near $62,000, 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.