Analysts from JPMorgan and Deutsche Bank Predict No Bitcoin Price Surge After Halving: Report

Bitcoin Halving Implications According to JP Morgan

Analysts at JP Morgan, the largest bank in the US, have indicated that the upcoming Bitcoin halving event is already factored into the market. The focus this time is expected to be on Bitcoin mining rather than the price of BTC. The halving, which occurs every four years and halves Bitcoin mining rewards, is scheduled around April 19-20.

• JP Morgan authors suggest that post-halving, there may not be a significant price surge as the event has already been priced in.
• They caution that gains may have already been realized and highlight the overbought conditions in the market.
• The report emphasizes that Bitcoin miners will be the most impacted by the halving event.

Impact on Bitcoin Miners

Miners who have prepared for the halving may have taken steps such as raising new capital in advance. As unprofitable miners exit the network, a drop in hashrate is anticipated, leading to consolidation among miners.

• Publicly-listed Bitcoin miners are expected to gain a higher share in the market.
• According to a report by Bitwise, total miner revenue typically decreases one month after each Bitcoin halving but rebounds later due to price increases and expansion of mining operations.

Bitcoin Halving Considerations by Deutsche Bank

Deutsche Bank analysts also believe that the Bitcoin halving has already been factored into prices, with no significant rally expected post-event. The hashrate has historically experienced declines after previous halvings, as some miners are priced out of the market.

• The analysts point out that mining becomes less profitable as rewards decrease.
• Despite these fluctuations, analysts remain optimistic about BTC price, especially with the anticipation of Ethereum ETF approval and the growth of layer-2 solutions and DeFi activities.