The upcoming halving in April could trigger a sharp decline in the price of the first cryptocurrency, JPMorgan experts report.
The reduction in the reward from 6.25 $BTC to 3.125 $BTC, as determined by the algorithm, will reduce the profitability of mining. The financial institution’s report noted that the cost of production affects the price of digital gold. Based on this, a group of analysts led by Nikolaos Panigirtzoglou predicts that after the halving the rate will fall to $42,000.
According to their estimates, the cost of “production” of the first cryptocurrency is currently $26,500. After halving, this figure will be $42,000.
Experts also assumed the possibility of a drop in the Bitcoin network hashrate by 20%, primarily due to the massive shutdown of low-efficiency equipment. Accordingly, capacity may be concentrated in large cryptocurrency miners that have taken measures to reduce costs and maintain efficiency.
Therefore, I recommend not to rush things, not to give in to emotions and to monitor the further development of the situation.
