- JPMorgan analysts expect the cost of the first cryptocurrency to decline to $42,000.
- Experts predict that this will happen after the Bitcoin halving.
- The company announced further consolidation of the cryptocurrency mining industry.
JPMorgan analysts predicted a drop in the rate of the first cryptocurrency to $42,000, writes The Block. In their opinion, the decrease in value will occur after the Bitcoin halving, which is likely to take place in April 2024.
Representatives of the financial group believe that the asset price will be affected by a reduction in remuneration for cryptocurrency mining. Increased costs for miners on technological processes and capacity expansion will also play a role, JPMorgan notes.
According to experts, the upcoming halving will lead to further consolidation of the cryptocurrency mining sector. Large companies have an advantage and will retain their business, while relatively small mining enterprises will face difficulties, analysts emphasize.
After the Bitcoin halving, the reward for mining a block will be halved, from 6.25 BTC to 3.125 BTC. This change will negatively affect the income of Bitcoin miners, JPMorgan notes.
“The $42,000 valuation is where we expect Bitcoin prices to head once the asset price euphoria subsides after April,” the analysts said.
JPMorgan emphasized that the possible exit of less efficient miners from the industry will lead to a decrease in Bitcoin hashrate by 20%. This will also have an impact on the entire industry, experts say.
Let us recall that we wrote that JPMorgan criticized Coinbase for the lack of clarity in working with cryptocurrency ETFs.