Bitcoin hit a low of around $49,000 last week. This price level is comparable to the cost of Bitcoin production estimated by JPMorgan Chase. If Bitcoin prices remain at or below this level for a long time, it will put pressure on miners, which in turn may exert further downward pressure on Bitcoin prices.
Several factors may keep institutional investors optimistic:
Morgan Stanley recently allowed its wealth advisors to recommend Bitcoin spot ETFs to clients.
Liquidation pressure from cryptocurrency payments from the Mt. Gox and Genesis bankruptcy cases may have passed.
The more than $10 billion in cash payments from FTX's bankruptcy may further stimulate demand in the crypto market by the end of the year.
Both parties in the U.S. election may support regulations that are favorable to cryptocurrencies.
