JPMorgan Analysts Pour Cold Water on Bitcoin Halving Price Surge Expectations

As Bitcoin’s highly anticipated halving event approaches, analysts at JPMorgan are casting doubt on the possibility of a post-halving price surge. In a report released on Wednesday, the analysts argue that the halving has already been factored into the market, potentially leading to a price decline after the event.

Nikolaos Panigirtzoglou, lead analyst at JPMorgan, stated, “We don’t expect a price increase because the halving is likely factored into the current price point,” echoing previous sentiments. The report identifies several factors supporting their bearish outlook, including an overbought market, high valuation, and lack of robust venture capital funding in the crypto space this year.

The halving, which will cut Bitcoin miner rewards in half, is expected to have a significant impact on the mining industry. JPMorgan anticipates a drop in hashrate as unprofitable miners exit the network, potentially leading to consolidation among mining companies.

The report also explores potential post-halving scenarios for struggling miners, noting limited options for them to pivot to other cryptocurrencies due to the specialization of their mining rigs.

While JPMorgan’s report paints a cautious picture for Bitcoin’s post-halving future, the cryptocurrency market is known for its volatility, and actual events may unfold differently. Investors seeking deeper insights into the potential implications of the halving should consider attending Benzinga’s upcoming Future of Digital Assets conference on Nov. 19.

Despite the cautious outlook, the cryptocurrency market remains unpredictable, and the future of Bitcoin post-halving is still uncertain. Stay tuned for more updates as the halving event approaches.