A new report has come from JP Morgan, which draws attention with its analysis of Bitcoin and the crypto money market.
According to the news of Coindesk, JP Morgan analysts, who discussed Bitcoin and the upcoming halving event in their latest report, stated that the halving, which is expected to take place in April 2024, will double the BTC production cost to approximately $ 40,000, and this will have a positive effect on the BTC price.
JP Morgan analysts led by Nikolaos Panigirtzoglou made the following statements in their report:
“We think retail demand for Bitcoin will remain strong over the next year ahead of the next halving.
While the recent surge in retail demand is partly due to the emergence of Bitcoin Ordinals and BRC-20 tokens, we expect retail, retail investors' demand for BTC to increase further as the April 2024 halving approaches.
The reason the upcoming halving has a positive impact on BTC price is because historically the cost of production has served as an effective lower bound for the BTC price.”
Referring to the previous halving events that took place in 2016 and 2020, analysts stated that after the halving event, an upward trend was seen in Bitcoin and the increase in the BTC price accelerated.
Analysts finally addressed institutional demand. “In turn, institutional demand for Bitcoin is falling as investors have been discouraged by increased uncertainty, fraud, increased volatility and increased US regulatory pressure since the beginning of 2023,” analysts said. said.
*Not investment advice.
