Analysts from JPMorgan Chase & Co and Deutsche Bank AG suggest that the upcoming halving event for Bitcoin is already factored into the market, leading to a focus on the impact on mining operations.

JPMorgan Chase & Co and Deutsche Bank AG do not anticipate significant changes in Bitcoin’s price following the halving event, as the market has largely priced in this event. A recent report from Bloomberg indicates that attention is now turning towards the effects on Bitcoin mining, with expectations of consolidation among publicly-traded companies as less profitable miners leave the network.

“Publicly-listed Bitcoin miners are in a good position to benefit from the changing landscape, thanks to increased access to funding, particularly through equity financing. This allows them to expand their operations and invest in more efficient equipment,” according to JPMorgan analysts.

Similarly, analysts at Deutsche Bank foresee no major price fluctuations post-halving, as the network’s algorithm has already incorporated the update.

The halving, which occurs every four years and halves the mining reward, is expected to take place on Apr. 19 at 22:07 (UTC), as reported by NiceHash. Historically, after Bitcoin halvings, the industry has seen a decrease in hashrate, indicating a reduction in mining capacity as unprofitable miners exit the market, according to Deutsche Bank analysts.

You might also like:
Leading Bitcoin miners witness dip in 2024 production, CryptoQuant says

Despite expectations of limited price volatility, Deutsche Bank remains optimistic about Bitcoin’s future, pointing to potential catalysts such as the approval of Ethereum exchange-traded funds (
ETFs
), changes in central bank interest rates, and regulatory developments that could create favorable conditions for the broader crypto ecosystem.

According to Marathon Digital Holdings CEO Fred Thiel, the firm’s break-even point after the halving is expected to be around $46,000 per Bitcoin to remain profitable. At the time of writing, Bitcoin (
BTC
) was trading at $64,574, reflecting a 12.8% decrease.

Read more:
Miner earns 6.36 BTC on 1 block of Bitcoin as halving approaches

Post Views: 3