Transferred fromYabbycasinofreespinsFinancial sector

This article is derived fromYabbycasinofreespinsFinancial sector

JPMorgan warned that while the long-awaited "halving" of Bitcoin is about to happen, do not expect Bitcoin to rise any faster. After this incident, the price of bitcoin is likely to plummet in the short term.

The quadrennial "halving" of bitcoins, scheduled for around April 19-20, will halve the amount of bitcoin rewarded to miners, thereby reducing the number of new bitcoins in circulation. The event is widely expected to be a bullish catalyst that will help Bitcoin hit an all-time high in 2024.

But analysts led by Nikolaos Panigirtzoglou at JPMorgan wrote in a report this weekYabbycasinofreespinsWe don't expect the price of Bitcoin to rise after it has been halved because it has already been digested. In fact, we think the price of bitcoin will fall after it is halved for several reasons. "

First, JPMorgan says the bitcoin market is still overbought after surging to a record high in March. Panigirtzoglou has previously pointed out several indicators that can confirm this.

"the prospect of a sharp rise in Bitcoin prices before the end of the year is still quite optimistic," he said in a separate report at the end of March. "much of this optimism stems from the view that even if the supply of bitcoin is halved after the halving event, demand for bitcoin through spot ETF will continue at the same rate."

JPMorgan also observed that venture capital financing remains low despite the recent recovery in the encryption market, another disadvantage to bitcoin prices.

"We have said before that the recovery of encryption venture capital flows is a necessary condition for a sustained recovery in the encryption market, so in our view, the downturn in venture capital flows so far this year poses a downside risk," the bank said in a report earlier this month.

Analysts at JPMorgan Chase say bitcoin mining companies will be hit by the halving, while some companies may relocate to improve efficiency as they face the prospect of lower returns. Other miners are likely to merge with large listed miners.

"after the halving incident, some bitcoin mining companies may also seek to diversify into low-energy-cost areas such as Latin America or Africa and deploy inefficient mining equipment," JPMorgan wrote. To get recycled value from these idle mining equipment. "