JPMorgan Analysts Predict Bitcoin Crash To $42,000 Post-Halving

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,351,488,597,896	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,351,488,597,896

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	899.85	1.33%	68,812.83	68,815.39	68,815.40

Price Change

Price Change %

Current Price

Bid Price

Offer

899.85

1.33%

68,812.83

68,815.39

68,815.40

High Price	Low Price	Open Price	Prev. Close	52 Week Range
68,918.03	67,658.00	67,857.26	67,912.98	24,900.00 - 73,835.57

High Price

Low Price

Open Price

Prev. Close

52 Week Range

68,918.03

67,658.00

67,857.26

67,912.98

24,900.00 - 73,835.57

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	14:27:03	0.003120	68,805.97	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

14:27:03

0.003120

68,805.97

USD

Price x Volume	Volume	Base Symbol	Related Pairs
177,414,393.91	2,602.90	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

177,414,393.91

2,602.90

JPMorgan Analysts Predict Bitcoin Crash To $42,000 Post-Halving – What You Need To Know

01/03/2024 1:00am

NEWSBTC

Bitcoin, the world’s largest cryptocurrency, faces a potential downturn in its price following the anticipated halving event scheduled for April, according to analysts at JPMorgan led by Nikolaos Panigirtzoglou. This event occurs approximately every four years and is expected to slash miner rewards from 6.25 BTC per block to 3.125 BTC. As a result, JPMorgan analysts have warned that the Bitcoin price could drop toward $42,000 post-halving. Related Reading: Bitwise CEO Says Bitcoin At $250,000 Is Closer Than You Think Reason Behind The Potential Crash To $42,000 The analysts attribute this potential decline to the reduced profitability for miners and the subsequent increase in BTC production costs. The analysts disclosed that the Bitcoin production cost has historically served as a “lower bound” for its prices, with the estimated range doubling post-halving to around $53,000. Nonetheless, a potential 20% reduction in the BTC network’s hashrate looms is primarily attributed to the departure of less efficient mining rigs from the operational landscape. Consequently, this scenario may drive the estimated production cost range to $42,000, calculated under an average electricity cost of $0.05 per kilowatt-hour (kWh). According to the analyst, Bitcoin miners with “below-average electricity costs” and “more efficient equipment” are expected to fare better following the halving event. In contrast, those with “higher production costs” may struggle to remain profitable. Consequently, analysts anticipate an increased concentration within the Bitcoin mining industry, with publicly listed miners likely to hold a higher share. Moreover, there is the prospect of “horizontal integration” via “mergers and acquisitions” among miners spanning different regions, aiming to leverage “synergies and minimize” collective operational expenses. Related Reading: Bitcoin Sees Massive Sell-Off From Miners, As Price Holds Steady Bitcoin Market Sentiments And Potential Surge Meanwhile, as JPMorgan analysts suggest a potential drop in Bitcoin’s price post-halving, Hunter Horsley, CEO of Bitwise, remains optimistic about Bitcoin’s long-term outlook. Horsley predicts that the cryptocurrency will surge to $250,000 sooner than anticipated. Bitcoin is going to eat into gold’s TAM faster than people expect. $250k Bitcoin could happen much sooner than most who’ve followed the space for years would imagine. Why? For 15 years, Bitcoin proved it’s merits but was only accessible to some. Bitcoin ETFs were Bitcoin’s… — Hunter Horsley (@HHorsley) February 28, 2024 Meanwhile, many metrics within the BTC market signal a potential surge for Bitcoin. On-chain data reveals that the Bitcoin MVRV ratio has reached levels reminiscent of the parabolic bull run experienced in 2020, suggesting a forthcoming surge may be imminent. MVRV hit 2.5, indicating a +150% average profit for all #Bitcoin wallets. In Nov 2020, MVRV was 2.5 at $18K, preceding the all-time high and parabolic bull run.https://t.co/cx8nYhNeeI pic.twitter.com/PgRLietkkz — Ki Young Ju (@ki_young_ju) 2 Amid these varying forecasts and market sentiments, BTC trades at $63,391, marking a slight retracement from its recent peak above $64,000 – the highest level traded in the past two years. Featured image from Unsplash, Chart from TradingView

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