LIVEIn a recent report, JPMorgan predicts that Bitcoin's price will drop to $42,000 after the upcoming Halving event. Analyst Nikolaos Panigirtzoglou anticipates a decline following the expected Halving excitement in late April.
Despite Bitcoin surging past $63,000 this week, marking its highest level since November 2021, JPMorgan foresees a decrease post-Halving. The digital asset sector experienced a significant rise in the first two months of 2024, approaching its all-time high of $69,000, attracting investor participation. The market is now eagerly awaiting Bitcoin's upcoming Halving event, raising questions about its potential impact on BTC prices.
While some hope that reducing circulating coins would benefit BTC, JPMorgan suggests the opposite. The bank specifically predicts Bitcoin dropping to $42,000 after the Halving event, citing a close connection between increased mining costs and reduced block rewards, which would affect Bitcoin.
According to JPMorgan analyst Nikolaos Panigirtzoglou, "Bitcoin mining costs play a practical role in limiting Bitcoin prices." He mentions that the mining cost for one BTC, estimated at $26,500, would mechanically double to $53,000 post-Halving.
Panigirtzoglou adds, "The $42,000 BTC price prediction is where we see Bitcoin heading after the enthusiasm caused by Bitcoin subsides after April." Finally, he notes, "Essentially, the high mining costs could eliminate many BTC miners."
