JPMorgan and Deutsche Bank say that the upcoming split won’t cause Bitcoin’s value to go up by a lot because the event’s effects have already been largely taken into account by the market. Instead, they talk about how the focus is shifting to how mining activities will be changed.
JPMorgan Chase & Co. and Deutsche Bank AG analysts have talked about what they think will happen with Bitcoin’s price after its halving event, which is a software change that happens every four years. They say it probably won’t have any significant impact on the price of the cryptocurrency.
Bitcoin Halving Spurs Mining Consolidation
According to information in a Bloomberg article, people are now looking at what might happen to Bitcoin mining. The industry is expected to merge as less profitable miners leave the network, which could lead to publicly traded companies taking over the market.
Publicly-listed Bitcoin miners are well positioned to take advantage of the new environment, mainly due to greater access to funding and in particular equity financing. This helps them to scale their operations and invest into more efficient equipment. JPMorgan analysts
Also, experts at Deutsche Bank, a well-known German bank, think that the halving will have little effect on Bitcoin prices because the network’s code has already taken this planned change into account.
According to data from NiceHash, the halving will happen on Apr. 19 at 22:07 (UTC). This is what happens every four years: the mining prize is cut in half. According to research from Deutsche Bank, after BTC is split in half, the hashrate usually goes down. This means that fewer miners are working on the network because they aren’t making as much funds.
Deutsche Bank is still positive about Bitcoin’s future, even though they think price volatility will be low. They talk about things that might make things better for the cryptocurrency environment as a whole, like expected approvals of Ethereum exchange-traded funds (ETFs), changes in interest rates at central banks, and changes to regulations.
CEO of Marathon Digital Holdings Fred Thiel says that the company will need to break even around $46,000 per Bitcoin after the split in order to stay profitable. Bitcoin (BTC) was selling at $64,574 at the most recent update, which is 12.8% less than it was earlier.
