JPMorgan predicts a drop in bitcoin to $42,000 after halving

JPMorgan has suggested a possible drop in bitcoin to $42,000 after the halving scheduled for April, which reduces the remuneration of miners.

Representatives of the financial group believe that the cryptocurrency exchange rate will be affected by a decrease in the reward for mining. In addition, the increased costs of miners for technical processes and capacity expansion will play a role.

According to experts, the upcoming halving will lead to further consolidation of the cryptocurrency mining sector. Large companies will retain their positions, while small mining enterprises may face difficulties.

After halving bitcoin, the reward for mining the block will be halved, from 6.25 BTC to 3.125 BTC, which will negatively affect the income of bitcoin miners.

Analysts note that the valuation of $42,000 is the level that bitcoin prices will strive for after the euphoria caused by the growth of the asset rate subsides after April. They also stressed that the exit of less efficient miners from the industry will lead to a 20% decrease in the bitcoin hashrate, which will also have an impact on the entire industry.