JPMorgan Analysts Predict Bitcoin Crash To $42,000 Post-Halving – What You Need To Know
01 Marzo 2024 - 2:00AM
NEWSBTC
Bitcoin, the world’s largest cryptocurrency, faces a potential
downturn in its price following the anticipated halving event
scheduled for April, according to analysts at JPMorgan led by
Nikolaos Panigirtzoglou. This event occurs approximately every four
years and is expected to slash miner rewards from 6.25 BTC per
block to 3.125 BTC. As a result, JPMorgan analysts have warned that
the Bitcoin price could drop toward $42,000 post-halving. Related
Reading: Bitwise CEO Says Bitcoin At $250,000 Is Closer Than You
Think Reason Behind The Potential Crash To $42,000 The analysts
attribute this potential decline to the reduced profitability for
miners and the subsequent increase in BTC production costs. The
analysts disclosed that the Bitcoin production cost has
historically served as a “lower bound” for its prices, with the
estimated range doubling post-halving to around $53,000.
Nonetheless, a potential 20% reduction in the BTC network’s
hashrate looms is primarily attributed to the departure of less
efficient mining rigs from the operational landscape. Consequently,
this scenario may drive the estimated production cost range to
$42,000, calculated under an average electricity cost of $0.05 per
kilowatt-hour (kWh). According to the analyst, Bitcoin miners with
“below-average electricity costs” and “more efficient equipment”
are expected to fare better following the halving event. In
contrast, those with “higher production costs” may struggle to
remain profitable. Consequently, analysts anticipate an increased
concentration within the Bitcoin mining industry, with publicly
listed miners likely to hold a higher share. Moreover, there is the
prospect of “horizontal integration” via “mergers and acquisitions”
among miners spanning different regions, aiming to leverage
“synergies and minimize” collective operational expenses. Related
Reading: Bitcoin Sees Massive Sell-Off From Miners, As Price Holds
Steady Bitcoin Market Sentiments And Potential Surge Meanwhile, as
JPMorgan analysts suggest a potential drop in Bitcoin’s price
post-halving, Hunter Horsley, CEO of Bitwise, remains optimistic
about Bitcoin’s long-term outlook. Horsley predicts that the
cryptocurrency will surge to $250,000 sooner than anticipated.
Bitcoin is going to eat into gold’s TAM faster than people expect.
$250k Bitcoin could happen much sooner than most who’ve followed
the space for years would imagine. Why? For 15 years, Bitcoin
proved it’s merits but was only accessible to some. Bitcoin ETFs
were Bitcoin’s… — Hunter Horsley (@HHorsley) February 28, 2024
Meanwhile, many metrics within the BTC market signal a potential
surge for Bitcoin. On-chain data reveals that the Bitcoin MVRV
ratio has reached levels reminiscent of the parabolic bull run
experienced in 2020, suggesting a forthcoming surge may be
imminent. MVRV hit 2.5, indicating a +150% average profit for all
#Bitcoin wallets. In Nov 2020, MVRV was 2.5 at $18K, preceding the
all-time high and parabolic bull run.https://t.co/cx8nYhNeeI
pic.twitter.com/PgRLietkkz — Ki Young Ju (@ki_young_ju) 2 Amid
these varying forecasts and market sentiments, BTC trades at
$63,391, marking a slight retracement from its recent peak above
$64,000 – the highest level traded in the past two years. Featured
image from Unsplash, Chart from TradingView
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