Analysts at JP Morgan, an American multinational financial corporation, have revealed the possibility of a significant bitcoin price correction, predicting that the cryptocurrency could see its price fall. to $42,000 after bitcoin-news/anticipation-peaks-as-bitcoin-halving-countdown-drops-below-100-days-will-prices-skyrocket/” rel=”nofollow noopener” target=”_blank”>bitcoin Halving Event.
bitcoin Price Prediction After Halving
Although many cryptanalysts bitcoin/bitcoin-halving-prep-analyst-outlines-key-points-ahead-of-event/” rel=”nofollow noopener” target=”_blank”>foresee the spectacular rise of bitcoin Following the highly anticipated bitcoin halving event, analysts at JP Morgan have remained bearish. According to analysts, an increase in production costs and mining difficulties could cause the btc price to drop to $42,000 after the btc halving event concludes.
He Halving bitcoin, which is a pre-scheduled event that occurs every four years, aims to reduce inflation by reducing the amount of new btc created. The “halving” refers to the 50% reduction in rewards paid to btc miners, resulting in less bitcoin mining and consequent Decrease in the supply of cryptocurrency.
Since btc's inception in 2009, there have been a total of three halving events, the first in November 2012, the second in July 2016, and the third in May 2020. bitcoin/when-is-the-next-btc-halving-date-bitcoin-halving-guide/” rel=”nofollow noopener” target=”_blank”>The Next bitcoin Halving Event is scheduled for April 2024, and several projections indicate a continuation of historical trends, foreseeing Sustained price increases in btc during this period.
Throughout the last three halving cycles, btc has witnessed exponential gains, reaching new all-time highs as decreasing supply drove up the value of the cryptocurrency. Even though this is repeated bitcoin/bitcoin-halving-prep-analyst-outlines-key-points-ahead-of-event/” rel=”nofollow noopener” target=”_blank”>historical technical patternJP Morgan analysts have predicted a bearish outlook for btcunderscoring the pronounced impact that a reduction in mining profitability will have on the price of the cryptocurrency.
“This $42,000 estimate is the level we expect btc prices to drift to once the bitcoin halving-induced euphoria subsides after April,” JP Morgan analysts stated.
At the time of writing, btc is trading at an all-time high of $61,565, reflecting a 20% price increase over the past seven days, according to CoinMarketCap.
A difficult road ahead btc miners
JP Morgan analysts have revealed that the halving event could impact bitcoin miners which leads the mining sector to extreme concentration.
In their report, the analysts revealed that btc production costs are a lower bound for prices, highlighting that after halving production costs could potentially rise to $53,000 and lead to a 20% drop in bitcoin network hash rate. This development could result in fewer miners competing to produce btc and subsequently affect its price.
Additionally, JP Morgan analysts have revealed the potential for small mining companies to go bankrupt, highlighting that after the event, bitcoin Mining Rewards it would be reduced from 6.25 to 3.125 btc. This reduction in mining profitability, coupled with increased mining difficulties, could negatively affect the profitability of the mining business, which could lead to the abandonment of many private miners, as the costs would be significantly higher than the profitability.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/03/JP-Morgan-Says-Bitcoin-Price-Will-Correct-After-Halving-Here39s" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″/>
btc price at $61.900 | Source: SOLUSD on Tradingview.com
Featured image from CNN, chart from Tradingview.com
