Bitcoin Halving: JPMorgan Makes a Dark Prediction

Scheduled to occur between April 19 and 20, i.e. in a few hours, the bitcoin halving is currently attracting all the attention. In a context of strong anticipation, JPMorgan predicts the consequences on the parent cryptocurrency of this quadrennial event. In a report published this Wednesday, the famous American bank affirms that it does not expect an increase in the price of BTC after the halving. It also predicts a significant decrease in the hashrate rate. The report details in this item.

Bitcoin halving has already been taken into account, according to JPMorgan

A few days before the BTC halving, JPMorgan analysts reiterate their opinion on the future trend of bitcoin. In the report published on Wednesday, they stated that they do not expect the price of bitcoin to rise. For them, the halving has already been taken into account, because the cryptocurrency recently broke the resistance at $72,500 and is currently in an overbought situation.

Indeed, in their report, analysts point to bitcoin's recent rally that boosted open interest in bitcoin futures ahead of options expiration. This level of enthusiasm among traders reflects intense speculative activity in relation to future bitcoin prices.

JPMorgan, which plans to create its own crypto, predicts that the halving euphoria will be followed by a significant drop in the price of BTC to $42,000. This represents a drop to almost 33% below its current value. If the cost of producing bitcoin, considered the lower limit of its price, is $42,000, will miners survive the halving?

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JPMorgan predicts a drop in hashrate after the halving

Alongside the anticipated collapse in the price of bitcoin, JPMorgan analysts also predict a significant decrease in the hashrate rate. This should be favored by the departure of unprofitable mining companies and the general decline in venture capital investments in cryptos. The US bank notes that publicly traded bitcoin mining companies will therefore end up with the largest share of the rewards.

Should you believe in these predictions and sell your BTC now to hope to buy them back at a lower price after the halving? However, if we ignore its analyzes and its overly precise predictions, is JPMorgan right to completely exclude the possibility of a six-figure post-halving bitcoin?

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