JPMorgan estimates that the cost to produce one Bitcoin has decreased from $24,000 at the beginning of June to approximately $13,000.
As long as the price of Bitcoin stays above this level, production costs can also serve as "the bottom bound of BTC price range and making mining operations profitable.
The New York-based bank predicts that Bitcoin's bottom may as well be as low as $13,000, a 45 percent decrease from current levels.
For instance, based on statistics taken from MacroMicro, the production cost is still around $17,700.
More miners will join when mining expenses are lower than the market price of bitcoin. When mining costs are too high miner income, and the number of miners will decline.
The kind of rigs, the cost of electricity, the cost of manpower, and the maintenance of the facility all have a significant impact on the cost of production.