JPMorgan and Deutsche Bank anticipate no surge for Bitcoin, affirm halving already factored in.
Analysts from two major financial institutions, JPMorgan Chase & Co and Deutsche Bank AG, have stated that the upcoming halving event for Bitcoin is already factored into the market, and therefore, they do not expect significant changes in the cryptocurrency’s price. The halving event, which occurs approximately every four years, will reduce the mining reward by half. Instead, the focus will shift to the impact on Bitcoin mining, with expectations of consolidation in the industry as unprofitable miners exit the network. Deutsche Bank analysts also noted that after previous halvings, there was a decline in the hashrate, indicating a reduction in mining capacity. Despite the lack of anticipated price volatility, Deutsche Bank remains optimistic about Bitcoin’s future, citing potential catalysts such as the approval of Ethereum exchange-traded funds (ETFs), adjustments in central bank interest rates, and regulatory changes. Marathon Digital Holdings CEO, Fred Thiel, stated that the firm’s break-even point after the halving would be around $46,000 per Bitcoin to maintain profitability. Currently, Bitcoin is trading at $64,574, representing a 12.8% decrease.
