In about 6 months the Bitcoin halving will arrive, the “halving” of rewards granted to minors gathered around the eponymous protocol. The halving is also a giant slide down which speculations and analyzes of all kinds have slid: increase in the price of BTC, difficulty of bitcoin mining, systemic effects, etc. According to JP Morgan, this phenomenon will negatively impact the profitability of mining activities. Big plan !
JP Morgan, a devastating halving for bitcoin mining?
The bitcoin halving, which will take place next April, represents a real challenge for BTC miners. First, this event will halve their block mining rewards: 3.125 BTC instead of 6.25 BTC. Then there are these other crucial points: bitcoin miner efficiency issues, possibility of increased electricity cost related to coin mining activity, etc.
Many believe, however, that bitcoin halving heralds the start of a bullish rally for the queen of cryptocurrencies. For CZ of Binance, systematically associating the ATH (All Time High) with the halving would be a mistake.
“ JPMorgan predicts a pivotal moment for the Bitcoin mining industry.
Reasoning:
– Highly anticipated approval of the BTC ETF.
– Approaching block reward halving.
– Approaching block reward halving.
JP also believes that the SEC’s ETF decision could result in significant investment in the sector. »
This Blocknews tweet is supplemented by a recent article from BeInCrypto based on the latest report from JPMorgan regarding bitcoin halving 2024. According to this report, the Bitcoin network will experience a 20% drop in hash rate once this step has been completed. Enough to decree a “ crucial moment » for the industry.
JP Morgan estimates that halving BTC miner rewards could generate approximately 20 billion dollarsif we take into account the current prices of bitcoin.
However, it should be noted that bitcoin halving will undoubtedly impact the profitability of the bitcoin mining sector. At the same time, this event will accelerate the removal of a large number of less efficient mining machines. This would represent approximately 20% of the Bitcoin network hashrate.
His ranking of the best bitcoin miners
By “best”, the financial giant established in its report some criteria :
“ [Les opérateurs miniers forts d’une valeur relative à leur] existing hashtrate, their operational efficiency, their energy contracts, their funded growth plans and their liquidity », Specified Reginald Smith and Charles Pearce, analysts at JPMorgan.
THE top 5 best BTC miners in the eyes of JP Morgan is therefore presented as follows:
- CleanSpark (CLSK), which has an overweight rating and price target of $5.50;
- Marathon Digital (MARA), underweight with a target of $5;
- Riot Platforms (RIOT), underweight combined with a target of $6.50;
- Cipher Mining (CIFR), neutral;
- Iris Energy (IREN), from neutral to overweight.
“ We believe CLSK, our top pick, offers the best balance of scale, growth potential, energy costs and relative value “, we can read in JP’s report.
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