Banking giant JPMorgan said that the price of Bitcoin (BTC) may drop to 42 thousand dollars after April.
JPMorgan analysts led by Nikolaos Panigirtzoglou made a remarkable prediction about the Bitcoin price in a report published on Wednesday. Analysts, Bitcoin halving to take place in April then the price It could drop to $42,000 He also listed his reasons.
According to analysts, the current block reward will increase with the halving. Drop from 6.25 BTC to 3.125 BTCThis will lead to a higher Bitcoin production cost, negatively affecting miners’ profitability. The increase in costs will cause the Bitcoin price to drop to 42 thousand dollars:
Bitcoin production cost has served as a lower bound for Bitcoin price so far. The center point of our estimated production cost range currently sits at $26,500, which will mechanically double the post-halving event to $53,000.
Additionally, with the closure of mining devices that started to work with less profit after the halving. A 20% drop in Bitcoin difficulty rate Analysts predicting that this situation will eventually reduce the production cost to 42 thousand dollars.
While it was reminded that there is a direct proportion between the production cost and the price of Bitcoin, it was emphasized that in the future, more powerful devices and more comprehensive mining facilities will increase the difficulty rate and the price may increase accordingly.
This increase in difficulty has led miners to unite and It may lead to the merger of some large companies It was stated:
Some horizontal integration through mergers and acquisitions may also occur between Bittcoin miners in regions to leverage synergies in their businesses.