The bitcoin (BTC) halving event, scheduled for April, will have a negative impact on the profitability of miners given the reduced rewards and higher production cost and ultimately could mean lower prices for the cryptocurrency, JPMorgan (JPM) said in a Feb. 28 research report.
The central point of the bank's estimated production cost range is currently around $26,500, which would mechanically double to $53,000 post-halving. The bitcoin network could also see a 20% decline after halving, reducing the BTC estimated production cost and price to $42,000, the report said.
Larger publicly listed bitcoin miners are better placed to endure in this 'fight for survival,' the authors wrote, adding that 'in a similar fashion to 2022' their market share is expected to increase post-halving.
[
add
]
[
|
|
...
]