- JPMorgan predicts Bitcoin price to fall to $42,000 post-halving, affecting miners’ profitability and survival.
- Bitcoin production cost will double to $53,000 post-halving, benefiting miners with low costs and efficient equipment.
Have you heard about the upcoming Bitcoin halving? Yes, that event that all crypto-enthusiasts have marked on the calendar. Well, according to the brains at JPMorgan, this might not be so great for the Bitcoin price. Let’s see, I’ll explain quickly.
It turns out that, traditionally, what it costs to produce a Bitcoin puts a floor on the price at which it sells. But after halving, JPMorgan says we could see that price drop to $42,000. Yes, you read that right.
Right now, producing a Bitcoin costs about $26,500, but with halving, that cost is going to double to $53,000. But there’s a twist: the Bitcoin network could lose 20% of its power, which would lower the cost of production and thus the price to that $42,000 I mentioned to you.
“We expect the Bitcoin price to move towards $42k after the excitement of halving in April passes,” they say from JPMorgan.
This is key for miners, especially those whose costs are high. Those who pay little for electricity and have top equipment, those are likely to keep carrying it. But those who spend a lot to produce may have a tough time.
The big miners, those that you can buy and sell on the stock market, are in an advantageous position to ride out the pull. According to JPMorgan, just as in 2022, these giants are likely to gain more ground after halving.
So, Bitcoin halving is not just another event. It could change who wins and who loses in the Bitcoin mining world. And about the price, well, JPMorgan sees a future where we could go down to $42,000. But hey, this is crypto, and anything can happen here. Will it go down? will it go up?
