BITCOIN

JPMorgan: Halving market has occurred ahead of schedule, recommends entering mining company stocks

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JPMorgan: Halving market has occurred ahead of schedule, recommends entering mining company stocks

JPMorgan analysts believe that the potential price increase of Bitcoin post-halving has partly been realized in the first quarter's surge, and they are more optimistic about mining stocks outperforming Bitcoin in the future.

JPMorgan: Halving Rally Has Occurred Earlier Than Expected

According to a report released on April 18 by JPMorgan cited by CoinDesk, analysts Reginald Smith and Charles Pearce stated:

Bitcoin has risen by 43% year-to-date and 130% in the past six months, suggesting that a portion of the typical post-halving rebound has been absorbed earlier.

With less than two days left until the halving, it is expected to occur on the 20th.

Halving Countdown | Source: CoinGecko

Positive Outlook on Mining Companies RIOT and IREN

JPMorgan pointed out that the market value of 14 U.S. mining companies has dropped by 28%, about $5.8 billion, from March 31 to April 15, falling to $14.2 billion. The performance of all mining company stocks lags behind Bitcoin, with an average decline of at least 20%.

Analysts are optimistic about Riot Platforms RIOT and Iris Energy IREN, both rated as "hold," as these two companies have more attractive relative valuations.

In contrast, among the four major mining companies favored by CoinShares, CleanSpark CEO, and Wall Street investment bank Bernstein, IREN was not included:

  • Marathon

  • CleanSpark

  • Riot Platform

  • Cipher Mining

CleanSpark CEO Optimistic About Post-Halving Development, Names Four Big Winners

Decline in Mining Companies is an Opportunity to Enter the Market

Analysts believe that the recent weakness in mining company stocks before Bitcoin halving actually provides attractive entry opportunities for investors:

The mining profitability of Bitcoin in early April was lower due to the increase in hash rate, leading to a difficulty increase exceeding the price increase of Bitcoin. However, with the Bitcoin halving approaching, we expect increased volatility and trading volume in Bitcoin and mining company stocks.