A new report by JPMorgan warns of a looming price correction for the world’s top cryptocurrency. Bitcoin’s price—above $63,000 on Thursday—has reached heights not seen in two years, but the coin’s upcoming halving event could push prices down to $42,000, according to analysts at JPMorgan.
“The Bitcoin production cost has empirically acted as a lower bound for Bitcoin prices,” the analysts wrote in a report released Wednesday, estimating that post-halving production costs could double to about $53,000. This could cause a 20% decline in the Bitcoin network’s hashrate, meaning fewer miners would be competing to produce Bitcoins simultaneously.
“This $42,000 estimate is also the level we envisage Bitcoin prices drifting towards once Bitcoin-halving-induced euphoria subsides after April,” the analysts wrote.
Read more here: https://fortune.com/crypto/2024/02/29/bitcoin-correction-jp-morgan-april-halving/
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This is interesting to hear this somewhat "dark" prediction for Bitcoin after the halving, courtesy of an analyst working in JP Morgan. Well, anything can happen with Bitcoin and this prediction can be true or false...as we would see after the halving. Just like many of us here, we are used to predictions for Bitcoin reaching a new ATH and setting a new record on or around $100K into year 2025.
1. Do you think this analysis from JP Morgan is based on historical precedents or just their own biased opinion which mostly will come flat and just be forgotten after?
2. Do you have your own prediction as to the price of Bitcoin after the halving...and would there be a big crash after this quadrennial event?