JPMorgan Expects Bitcoin to Fall After Halving

By Asif Ali Awan

| Published Apr 19, 2024 | 09:45 a.m.

Bitcoin's price might drop after the halving event, which happens every four years and cuts down on how many new bitcoins are made. This event is expected around April 19-20. The big bank JPMorgan thinks the price will go down because too many people have bought bitcoin futures, making the market too hot.

Right now, one bitcoin costs about $61,200, but JPMorgan says it should be more like $45,000 when you compare it to gold, and the cost to make a bitcoin will be about $42,000 a

fter the halving. Usually, the cost to make a bitcoin is the lowest price it has.

Even though more people are getting into crypto, the money from big investors isn't really growing. The halving will hit the mining companies the hardest. JPMorgan expects that when the less profitable miners stop mining, there will be a big drop in the total mining power, and the big mining companies that are listed on stock exchanges will take over.

After the halving, some mining companies might move their operations to places where power is cheap, like Latin America or Africa. They'll do this to get some value out of their old mining machines that aren't good enough anymore, instead of just letting them collect dust.