The leading cryptocurrency Bitcoin is very close to breaking the $69,000 ATH as the excitement lost in the 2022 “crypto winter” is reignited.
At this point, while a generally bullish atmosphere prevails in the market, a bearish forecast for BTC came from JPMorgan analysts.
According to The Block, JP Morgan analysts said they expected Bitcoin to drop to $42,000 after the halving in April.
Here's what JPMorgan analysts led by Nikolaos Panigirtzoglou said about the halving and Bitcoin price in a report on Wednesday:
“The halving event will reduce Bitcoin miners' rewards from 6.25 BTC to 3,125 BTC per block.
This decline will negatively impact miners' profitability and lead to higher Bitcoin production costs.
Since the halving affects the price of miners' BTC production cost, we estimate that the price will be around $42,000 after the halving.
Because the Bitcoin production cost empirically serves as a lower limit for Bitcoin prices.
The center point of our estimated production cost range is currently $26,500, which will mechanically double to $53,000 following the halving event.
Based on the average electricity cost after the halving of $0.05/kWh, the center point of the estimated production cost range will increase to $42,000.
This $42,000 prediction is also the level where we predict Bitcoin prices will drift as the enthusiasm caused by the Bitcoin halving wanes after April.”
JP Morgan analysts recently stated that they expect the Bitcoin mining industry to become even stronger and that larger miners are expected to survive after the halving.
*This is not investment advice.