J.P. Morgan: Bitcoin to retrace to $42,000 after halving in April

According to a report by CoinDesk, JPMorgan believes that after the Bitcoin halving in April, the reduction in rewards and the increase in production costs will have a negative impact on miners' profits, estimating that the price of Bitcoin will fall to $42,000.

Bitcoin Price to Face Correction After April

Morgan Stanley noted that the production cost of Bitcoin has historically served as the lower limit for its price. The bank currently estimates the midpoint of the Bitcoin production cost range to be around $26,500, which will double to $53,000 after the halving. The report stated that the network hash rate of Bitcoin may decrease by 20% after the halving, which would lower the estimated production cost and price of BTC to $42,000.

Analyst Nikolaos Panigirtzoglou stated in the report:

Once the optimism triggered by the Bitcoin halving in April fades, the price of Bitcoin will tend towards this level, and $42,000 is our estimated price.

High Costs Will Impact Miners

Morgan Stanley also pointed out that the halving will impact miners with higher costs. Bitcoin miners with lower electricity costs and higher machine efficiency may survive, while miners with higher production costs may struggle.

Larger publicly traded Bitcoin miners are better positioned to win in this "battle for survival," and their market share will increase after the halving.

Previously, asset management company CoinShares released a mining report, stating that the average cost of Bitcoin miners after the halving will be $37,856; if the Bitcoin price remains below $40,000 in the long term, only 5 mining companies will be able to profit and operate successfully, namely Bitfarms, Iris, CleanSpark, TeraWulf, and Cormint.

CoinShares Report: Bitcoin Miners' Cost Price After Halving $37,800, Only 5 Mining Companies Can Profit