JPMorgan Predicts Bitcoin Price Decline Post-Halving

JPMorgan analysts predict a decline in Bitcoin's value post-halving, asserting that the anticipated event has already been reflected in the current price. Leading the analysis, Nikolaos Panigirtzoglou noted, "We do not expect bitcoin price increases post-halving as it has already been priced in. In fact, we see a downside for the bitcoin price post-halving for several reasons." These include the cryptocurrency's "overbought conditions" and its current value significantly exceeding JPMorgan’s volatility-adjusted benchmark of $45,000 relative to gold, along with projected production costs post-halving estimated at $42,000.

Additional factors likely to pressure Bitcoin's price downward include lackluster crypto venture capital funding this year, despite a resurgence in the sector. Currently, Bitcoin trades at about $61,500.

The halving event, scheduled for this week, will halve the mining reward from 6.25 BTC to 3.125 BTC per block. This expected reduction could lead to a significant drop in the mining hash rate as less profitable miners exit the network, potentially resulting in a consolidation favoring publicly-listed mining companies.