JPMorgan Analysts Predict Bitcoin Decline Post-Halving

With the market still in an overbought state, there is a possibility of a correction in the price of the leading cryptocurrency following the reduction in miners’ rewards. This is reported by CoinDesk, citing a JPMorgan report. 

Analysts reached this conclusion based on an analysis of open interest in bitcoin futures. 

Furthermore, the asset’s price around $61,500 still exceeds the bank-adjusted gold price with a volatility adjustment at $45,000. 

JPMorgan also noted that venture funding in the industry remains low despite the recent resurgence of the cryptocurrency market.

According to experts, mining companies will feel the most significant impact from the halving factor. 

“As unprofitable miners of the leading cryptocurrency exit the blockchain, we expect a significant drop in hash rate and consolidation among public bitcoin miners with the largest share,” the report states. 

Analysts believe that after the reward halving, digital gold mining firms will attempt to diversify their regional presence. 

Companies will prefer countries in Latin America or Africa with low electricity costs, where they will deploy outdated equipment to maximize profits, researchers suggest. 

Earlier, 10x Research warned of a potential $5 billion bitcoin sell-off by miners following the reward reduction. 

In April, Marathon CEO Fred Thiel stated that the upcoming halving is already priced into bitcoin.