Bitcoin price could drop to $42,000 after April halving?

JPMorgan Chase experts say the upcoming Bitcoin halving event in April could lead to a significant drop in the price of Bitcoin.

According to a study released on Wednesday by JPMorgan analysts under the guidance of Nikolaos Panigirtzoglou, the halving event will reduce Bitcoin miners' expenses from the current 6.25 BTC per block to 3.125 BTC. This reduction will negatively affect miners' profitability and increase the production cost of Bitcoin. The cost of producing Bitcoin affects its price; analysts expect it to be around $42,000 after the halving.

“As a rule of thumb, the cost of Bitcoin production has served as a floor for Bitcoin’s price.” “We currently estimate the center point of the production cost range to be $26,500, which will mechanically double to $53,000 after the halving event.”

But the analysts say the Bitcoin network’s hashrate could drop by 20% after the halving, mainly due to less productive miners exiting mining as it is no longer profitable. Therefore, assuming an average energy cost of $0.05/kWh, this would lower the midpoint of the expected production cost range to $42,000, they continued.

“The $42,000 estimate is also the level we expect Bitcoin prices to trend towards once the excitement surrounding April’s Bitcoin halving subsides,” the analysts said.

According to CoinMarketCap, Bitcoin is currently trading at around $62,271.

Analysts predict that after the halving, Bitcoin miners with lower electricity costs and more energy-efficient equipment may succeed, while Bitcoin miners with higher production costs may struggle.

As a result, they said, the Bitcoin mining industry is expected to become more concentrated after the halving, with a large portion controlled by publicly traded miners as they reduce overall costs to maintain profitability.

“There may also be some horizontal integration among Bitcoin miners across regions through mergers and acquisitions to exploit synergies in their operations,” the researchers found.

5 Tokens to Expand Your Portfolio 50x in This Bull Run:

1.OP

The recent price surge of the Optimism (OP) token reflects a very strong momentum, opening up the potential for further upside in the near term. Its reaching of the $4.090 level signals a rise in investor confidence, which could foster accelerated demand. However, the inherent volatility of the cryptocurrency market requires a close watch on the performance of this asset. For those who perform due diligence and invest strategically, the near future could be lucrative.

In the long run, Optimism’s current success can be seen as a double-edged sword. While its impressive rally may attract more investors, it has equally raised concerns about overvaluation. The cryptocurrency market is highly dependent on market sentiment, which means that any shift could drastically erode its value. Therefore, while OP Token is currently showing a strong upward trend, there is always room for correction in the long run. If market conditions change, the price may fall, which reminds us that investing in digital assets often comes with unpredictability and risks.

2.BE

The evaluation surrounding Sei (SEI) shows promising signs of development. Judging from the forecast, SEI has the potential to experience a bullish trend in the near future. The technology used by Sei is gaining momentum, which could drive its price higher, thereby improving its market performance. In the short term, as long as the overall cryptocurrency market sentiment remains positive, the SEI game will advance steadily and incrementally.

However, there could be sudden market changes, unforeseen rigidities, or regulatory developments that could slow down the SEI’s progress. We may also need to consider continued competition from other digital assets. In the long term, these factors could weaken the SEI’s positive outlook, bring more price volatility, or even a bearish trend. Therefore, while the outlook for this digital asset appears to be positive overall, it is important to remain aware of potential risks and challenges that could affect its future direction.

3. Dogecoin

The price of Dogecoin has been volatile since its appearance on Saturday Night Live. One possible scenario is that Dogecoin could rise given its growing public exposure and interest from celebrities. This could spark a bull run, pushing prices higher as more individuals invest. Investors who take advantage of celebrity-induced spikes could see significant returns, especially in markets where doge memes have social currency.

However, the flip side may also be true. Dogecoin’s massive price increase was largely based on celebrity endorsements, rather than intrinsic value. This manipulative influence could lead to a price bubble that could eventually burst and cause a significant price drop. This raises concerns about the coin’s stability, and it’s not unrealistic to consider a potential drop in the long run. Low liquidity could also be a problem, making it harder for investors to sell the asset if the market turns.

4.ADA

Cardano may soon make significant progress. Charles Hoskinson is working to counter current criticism with extremely optimistic developments in the ADA ecosystem. The high anticipation for smart contracts executed by Cardano’s Alonzo upgrade may lead to a surge in prices. Moreover, its transformation into a multi-asset blockchain may attract more investors due to increased transaction speeds and reduced costs. Therefore, given these favorable developments, the price may break through $3 in the short term.

On the other hand, despite the positive outlook, the potential obstacles facing Cardano cannot be ignored. Although the upgrade is coming, market uncertainty, regulatory threats, and fierce competition from established blockchains such as Ethereum and Polkadot may hurt ADA's growth. In addition, ADA prices have already experienced a sharp increase recently, which may deter new investors and thus slow down price growth. Therefore, Cardano prices may remain below $3 in the short term. However, the long-term prospects largely depend on the speed and efficiency of the Alonzo upgrade.

in conclusion:

While Optimism, Sei, Dogecoin, and Cardano are gaining momentum, BlastUP stands out for its unique potential. Given its unique position in the Blast ecosystem and its innovative approach to launching DApps, BlastUP has delivered high returns to investors. While other cryptocurrencies have shown varying degrees of growth potential, BlastUP’s robust roadmap, favorable presale, and newbie-friendly toolkit ensure that it stands out in the dynamic crypto bull market. It is an exemplary project that deserves investors’ attention.

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