JPMorgan, Deutsche Bank Analysts Do Not Expect BTC Price to Surge Post Halving: Report
Analysts at the biggest bank in the US – JP Morgan, says Bitcoin halving is already priced in. This time, the implication would be mainly on Bitcoin mining rather than BTC price, they wrote in a research report.
Bitcoin mining – a four-year event that slashes Bitcoin mining rewards in half – is set to occur around April 19-20.
JP Morgan authors noted that they do not expect to see post-halving price rise as the event “has already been already priced in.” The experts stressed caution, noting to the possibility the gains have already been realized.
Cited by Bloomberg, the analysts wrote that the market is still in overbought conditions. Further, the report stressed that Bitcoin miners will be most affected by the event.
Miners who are pre-prepared for the halving have likely laid the groundwork ahead of time by perhaps raising new capital.
However, “as unprofitable Bitcoin miners exit the Bitcoin network, we anticipate a significant drop in the hashrate and consolidation among Bitcoin miners with a highest share for publicly-listed Bitcoin miners,” the report read.
That said, per a recent report by Bitwise, total miner revenue slumped one month after each Bitcoin halvings held previously. Although, the revenue rebounded significantly later, thanks to BTC price increase and miners expanding their operations.
JP Morgan analysts led by Nikolaos Panigirtzoglou wrote that post the upcoming having, some Bitcoin mining firms might look to diversify their operations to low-energy cost regions such as Latin America. This is “to locate their inefficient mining supply and gain salvage values from those rigs which would otherwise sit idle.”
On a similar note, analysts from Deutsche Bank have also stressed that there would be no significant
