On December 5, JPMorgan analysts stated that, regarding Bitcoin’s recent price movements, the resilience of MicroStrategy (stock code MSTR) is more important than miner activity. Although the world’s largest holder of Bitcoin has yet to begin selling, Bitcoin miners appear to be facing growing selling pressure.

Nikolaos Panigirtzoglou, Managing Director at JPMorgan, and his team noted in a Wednesday report that the sustained pressure on Bitcoin’s price in the near term mainly stems from two factors: a recent decline in Bitcoin network hashrate and mining difficulty, and the latest developments surrounding MicroStrategy.

The analysts stated that the decrease in hashrate and mining difficulty reflects the influence of two forces: China’s reiteration of its Bitcoin mining ban following a surge in private mining activity, and the squeeze on profits for miners outside China caused by lower Bitcoin prices and high energy costs, leading high-cost miners to exit the market.

The analysts pointed out that while a drop in hashrate typically raises miner revenue, “Bitcoin’s price is still hovering below its production cost,” leading to selling pressure in the Bitcoin market.

JPMorgan analysts have now lowered their estimate of Bitcoin’s production cost to $90,000, down from $94,000 last month. According to their estimates, this update is based on an electricity price assumption of $0.05/kWh; for high-cost producers, every $0.01/kWh increase in electricity price raises production costs by $18,000.

JPMorgan’s report states: “Against a backdrop of high electricity prices and declining Bitcoin prices squeezing profits, some high-cost miners have been forced to sell Bitcoin in recent weeks.”