Bitcoin mining economics have worsened so far this year, with bitcoin prices staying below estimated production costs for five consecutive months, increasing pressure on miners, a report cited by The Block said. JPMorgan analysts led by Nikolaos Panigirtzoglou said bitcoin hashrate and mining difficulty are reacting more sensitively to price swings, with more miners operating near break-even. JPMorgan estimates production costs at about $78,000 versus a bitcoin price of around $62,500.

JPMorgan has assessed that the chances have declined that the CLARITY Act, a U.S. cryptocurrency market structure bill, will pass this year. Although it cleared a Senate committee, it still faces a Senate floor vote, coordination with the House and a presidential signature, leaving its fate before the midterm elections uncertain. JPMorgan cited a tight legislative calendar and disputes over rules governing yield on stablecoin holdings.