JPMorgan Again Expects Bitcoin Price to Decline Sharply Post-Halving
JPMorgan analysts have once again issued a warning about the potential price decline of Bitcoin following this week's halving event.
JPMorgan expects Bitcoin price to decline post-halving. Photo: Bitcoin Sistemi
With less than two days until the highly anticipated Bitcoin halving event, JPMorgan's experts have reiterated their projections for this pivotal moment.
Led by analyst Nikolaos Panigirtzoglou, the research team reaffirmed their previously stated viewpoint:
"We do not expect Bitcoin's price to rise following the halving as it is already priced in."
They maintain their stance that Bitcoin's price will decrease due to several reasons:
Firstly, Bitcoin remains in an "overbought" zone, as previously argued.
Secondly, Bitcoin's price is higher than JPMorgan's expectations. The bank suggests that compared to gold, Bitcoin should be priced around $45,000 USD.
Thirdly, Bitcoin's price still exceeds the production cost post-halving. It is anticipated that after the halving event, the production cost of Bitcoin (meaning the cost to mine a new coin) will fall to around $42,000 USD.
Analysts further emphasize that the level of speculative capital inflows into the crypto sector is not yet strong enough, despite signs of market recovery. This could contribute to a downward pressure on Bitcoin's price in the near future.
Halving is Bitcoin's built-in mechanism designed by Satoshi Nakamoto to halve the reward for mining new blocks every 120,000 blocks, occurring approximately every four years. This event aims to prolong the Bitcoin mining timeline, ensuring that the total supply of the world's largest cryptocurrency remains capped at 21 million BTC by the year 2140.
Ahead of this significant event, searches for "Bitcoin halving" are also reaching unprecedented levels on Google Trends.
At the time of writing, Bitcoin is trading at $63,889 USD per coin. The king of cryptocurrencies has surged nearly 130% compared to the previous year but has retraced 10% over the past week, just ahead of the halving.
1D chart of BTC/USDT pair on Binance as of 10:15 PM on April 18, 2024.
