Based on a study conducted by financial institution JPMorgan (JPM), the value of bitcoin (BTC) may decrease following its halving event, set for April 20.
The speaker anticipates a decrease in Bitcoin’s price following the halving, pointing to excessive buying in futures markets as evidence. Currently, Bitcoin is priced at roughly $61,200, which surpasses JPMorgan’s gold-adjusted benchmark of $45,000 and the anticipated production cost of approximately $42,000 after the halving event.
Previously, the cost to produce a Bitcoin served as a minimum benchmark for its market price. Additionally, JPMorgan observes that financing from venture capitalists has remained limited even with the recent revival of the cryptocurrency market.
Mining companies will experience the most profound effect of the halving, according to the bank’s prediction. There is expected to be a considerable decrease in the hashrate, leading to consolidation among Bitcoin miners. The report suggests that mining firms may utilize outdated rigs in regions with low-cost energy like Latin America or Africa to extract any remaining value.
JPMorgan had previously warned investors that the price of bitcoin could drop to $42,000 following the April halving event. They believed that this level was a possible destination for bitcoin’s price once the excitement surrounding the halving event subsided. Additionally, the bank mentioned that both the bitcoin halving and the upcoming Ethereum upgrade have already been factored into current market prices.
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2024-04-18 14:28