Bitcoin Could Slide to $42K After Halving Hype Subsides, JPMorgan Says
The upcoming Bitcoin halving event in April is expected to negatively impact the profitability of miners due to reduced rewards and increased production costs, potentially leading to lower cryptocurrency prices, according to a research report by JPMorgan. The bank predicts that the Bitcoin production cost, which has historically acted as a lower boundary for Bitcoin prices, could fall to $42,000 post-halving. The Bitcoin network may also experience a 20% decline in its hashrate after the halving, further reducing the estimated production cost and price. Miners with below-average electricity costs and more efficient rigs are likely to survive, while those with high production costs may struggle. Larger publicly listed Bitcoin miners are expected to increase their market share post-halving.
