Experts from JPMorgan Chase & Co and Deutsche Bank believe that the upcoming reduction in Bitcoin rewards for miners (halving) has already been factored into current market prices. As a result, they are now considering the potential implications of this event on the mining process itself.
JPMorgan Chase & Co and Deutsche Bank AG predict minimal impact on Bitcoin’s price post-halving, believing the market has already accounted for this periodic software update. As per a Bloomberg article, attention will instead turn to Bitcoin mining, with speculation of industry consolidation as publicly-traded companies expand their influence while less profitable miners leave the network.
Bitcoins mined in public companies can easily expand their businesses in this new setting. They have better financial resources at hand, enabling them to secure equity financing. Consequently, they are able to grow their operations and acquire advanced mining equipment.
JPMorgan analysts
In the same manner, experts at Deutsche Bank, a prominent German financial institution, anticipate minimal price growth for Bitcoin following the halving event. They believe that the cryptocurrency’s built-in mechanism has already factored in this update.
The reduction in mining rewards by half, known as the halving, is expected to occur on April 19 at 22:07 (UTC), based on information from NiceHash. In the past, after Bitcoin undergoes a halving, there has typically been a decrease in hashrate within the crypto industry. This decline suggests that less profitable miners have left the market, as analyzed by experts at Deutsche Bank.
Although some predicted that Bitcoin’s price would remain stable, Deutsche Bank remains optimistic about its future direction. They point to several possible causes for this optimism: the potential approval of Ethereum ETFs, shifts in central bank interest rates, and regulatory changes. Each of these factors could create a more positive environment for the crypto market as a whole.
Based on Fred Thiel’s statement as CEO of Marathon Digital Holdings, the company would need Bitcoin to be priced around $46,000 for it to cover costs and remain profitable after the halving. Currently, Bitcoin is being bought and sold at $64,574, which is a 12.8% decrease from that figure.
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2024-04-19 10:20