At the time this article was written, the price of bitcoin had fallen to $61,500. That represents a 2.50% decrease over the previous day. It made a fleeting visit to the $63,000 mark, but it is currently rising lower on the chart. A JPMorgan analyst has forecast that after the excitement surrounding the halving subsides, there may be a drop in the price of Bitcoin.
Every four years, the Bitcoin network halved its token supply. As a result, Bitcoin has become rarer and more costly for miners. The historical background of the Bitcoin halving lends credence to the theory that prices will climb following the estimated April 2024 splitting. There’s also conjecture that the price might not fluctuate significantly.
According to a JPMorgan analyst, one of the most anticipated drivers for Bitcoin increases is the halving. Furthermore, the costs can still be less. It is predicated on two essential ideas: energy intensity and electricity cost. Both could be hindered in April, which would impact miners’ productivity.
The majority of miners would choose to leave their jobs if production costs increased to the point where it reduced profitability. As a result, the hash rate—which gauges the industry’s overall mining capacity—will drop.
They have made it clear that each token’s average production cost for Bitcoin is currently $26,500. After being halved, something might mechanically double. It is anticipated that mining difficulty will drop by 20% from the initial projections.
After April 2024, the expected total cost is $42,000. Bitcoin’s price is being driven by an increase in demand for ETFs. Since the US SEC authorized eleven applications for the product on January 10, 2024, the offering has attracted new investors.
The last recorded inflow for ETFs was $612 million on Wednesday. With that sum, BlackRock’s IBIT lead the inflow. The price of Bitcoin is rising as a result of this pattern. The token has increased by 20.34% over the last seven days and by 46.28% over the last thirty days, despite a 2.43% decrease over the past day. The increase to $62,000 represents a 45% increase over last year.
While supporting the price reduction, JPMorgan has left the door open for future increases. In the event that the price halves and falls to $42,000, investors will probably stockpile tokens before the price increases once more. By the end of 2024, Bitcoin is predicted to rise above its previous ATH of $69,000. That would open the door for the $100,000 next goal. This is acknowledged as a level of psychological support that will put Bitcoin in the best possible position to make money.
