JP Morgan Issued a New Warning About Bitcoin (BTC) Price!

Bitcoin and altcoins responded to the tension between Iran and Israel that started over the weekend with a sharp decline. While the ongoing tension between the two countries caused the downward trend to continue, these declines overshadowed the Bitcoin Halving event, which remained for a very short time.

At this point, while investors were eagerly waiting for the impact of the halving on the BTC price, a new assessment came from the US banking giant JP Morgan.

According to Coindesk, JP Morgan said in a report published today that it expects the Bitcoin price to fall after the halving.

Analysts stated that Bitcoin futures gave a negative signal for the post-halving period and said that miners would be most affected by this situation.

JP Morgan analysts led by Nikolaos Panigirtzoglou wrote:

“We think it is likely that the Bitcoin price will fall after the halving. The projected production cost after the halving will be $42,000. The Bitcoin production cost has historically served as a lower bound for BTC prices.”

Analysts also stated that the biggest impact of the halving will be felt by mining companies, saying, “As unprofitable Bitcoin miners leave the Bitcoin network, we expect a significant decrease in hashrate and consolidation among Bitcoin miners with the highest share among publicly traded Bitcoin miners. At this point, after the halving, some BTC mining companies will exit the Bitcoin network.” “They are likely to turn to low energy cost regions such as America or Africa,” he said.

In a note sent to their clients yesterday, JP Morgan analysts said that Bitcoin’s superior performance so far may mean that some of the typical post-halving rally has been brought forward.

*This is not investment advice.