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JPMORGAN PREDICTED BITCOIN TO FALL TO $42000 AFTER HALVING

JPMORGAN PREDICTED BITCOIN TO FALL TO $42,000 AFTER HALVING

  • Analysts at JPMorgan expect the value of the first cryptocurrency to drop to $42,000.
  • Experts predict that this will happen after the bitcoin halving.
  • The company said further consolidation of the cryptocurrency mining industry.

Analysts at JPMorgan predicted a drop in the rate of the first cryptocurrency to $42,000, writes The Block. In their opinion, the decline in value will occur after the halving of bitcoin, which is likely to take place in April 2024.

Representatives of the financial group believe that the rate of the asset will be affected by the reduction of remuneration for mining cryptocurrency. The increased costs of miners for technological processes and capacity expansion will also play its role, JPMorgan noted.

According to experts, the upcoming halving will lead to further consolidation of the cryptocurrency mining sector. Large companies have an advantage and will retain their business, while relatively small mining enterprises will face difficulties, analysts emphasize.

After bitcoin halving, the reward for mining a block will be cut in half, from 6.25 BTC to 3.125 BTC. This change will have a negative impact on bitcoin miners’ income, JPMorgan notes.

“The $42,000 valuation is the level to which we believe bitcoin prices will be headed once the euphoria caused by the asset’s appreciation subsides after April,” the analysts said.

JPMorgan emphasized that the possible exit of less efficient miners from the industry would lead to a 20% drop in bitcoin hash rate. This will also have an impact on the entire industry, experts note.

Recall, we wrote that JPMorgan criticized Coinbase for the lack of clarity in the work with cryptocurrency ETFs.


Michael Altman