Bittime -Will this JP Morgan prediction be accurate? Wall Street financial giant JP Morgan has just issued a prediction that goes against the trend surroundingthe Bitcoin halving. Halving itself is an event that occurs every four years where the rewards received by Bitcoin miners are cut in half. It is estimated that this event will occur around April 19-20 2024.
JPMorgan: Bitcoin Masih "Overbought"
In a research report published Wednesday, JP Morgan analysts actually predicted that Bitcoin prices would fall after the halving. Their reason is that the Bitcoin market is currently still in an " overbought " condition (too many people are buying) based on their analysis of open interest (the number of open contracts) in Bitcoin futures instruments.
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Bitcoin Price Too High?
Additionally, JP Morgan considers Bitcoin's current price, around $61,200, to be too high. According to their analysis, considering volatility, the fair price of Bitcoin should be around $45,000. They also estimate that post-halving Bitcoin production costs will fall to $42,000, which has historically been the support point (lower limit) for Bitcoin prices.
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Biggest Impact on Bitcoin Miners
The JP Morgan report also highlights the impact of the halving that will be felt by Bitcoin mining companies. The report states "With the departure of Bitcoin miners who are no longer profitable due to the drop in reward halving, we anticipate a significant decline in hashrate (the computing power of the Bitcoin network) and consolidation among Bitcoin mining companies, where public players will increasingly dominate."
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The report also predicts some mining companies may look to locations with lower energy costs such as Latin America or Africa to move their less efficient equipment. This is done to save the value of assets in the form of mining equipment which if not moved would be abandoned.
Counter Trend Predictions
JP Morgan's prediction is contrary to the general view which believes Bitcoin prices will rise after the halving. This is because halving will reduce the supply of new Bitcoin circulating on the market.
JP Morgan's Complex Relationship with Bitcoin
Interestingly, JP Morgan is listed as an official participant in BlackRock's Spot Bitcoin ETF, an investment instrument that tracks the price of Bitcoin. This shows the complex relationship between JP Morgan and these digital assets.
How to Buy BTC from Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
Bitcoin Halving 2024: Could Altcoin Prices Skyrocket?
Bitcoin Halving Happening This April, Will BTC Prices Rise?
XRP Price Prediction 2024: Impact of the Bitcoin Halving and Could the Price Hit $1
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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