Analysts at JP Morgan have predicted that the major digital currency could fall to as low as $42,000, The Block reports. According to them, the devaluation will occur after the expected halving of bitcoin tentatively in April 2024.
The group's financial experts expect asset values to be impacted by lower rewards for mining the digital currency, with #JP Morgan emphasizing that increased spending by miners on technological developments and infrastructure expansion will also contribute to this scenario.
According to industry experts, the upcoming #halving will lead to a more consolidated situation in cryptocurrency #mining. As analysts point out, large companies will be able to remain competitive, while smaller mining companies are likely to face operational challenges.
After bitcoin halving, the reward for mining blocks will decrease from 6.25 BTC to 3.125 BTC; as JP Morgan explained, this change is expected to negatively impact bitcoin miners' revenue.
"The $42,000 valuation is the threshold to which bitcoin prices are expected to gravitate when the initial excitement following the April bitcoin surge cools off"stated the analyst.
JP Morgan emphasized that bitcoin's #hashrate could fall by 20%. According to experts, this change will have broad implications for the entire industry.
