JP Morgan analysts have revealed that the upcoming Bitcoin halving has already been priced into the market.

In their recent research, as reported by Bloomberg, the experts pointed out that while the halving may not cause a significant increase in Bitcoin’s (BTC) price, it will most likely impact Bitcoin mining operations. The analysts emphasized that they do not expect a post-halving price surge because investors have already factored the event into their estimates.

Possible Outcomes for Bitcoin Miners

Miners who are well-prepared for the halving have already laid the groundwork, including securing new funding. The report added that as unprofitable Bitcoin miners leave the network, hashrate will decline significantly.

This could lead to consolidation among Bitcoin miners, especially for publicly traded ones. A Bitwise report also mentions that total miner revenue typically decreases in the month following each Bitcoin halving.

However, it rises quickly afterward due to increased BTC’s price and miners looking to expand operations. Furthermore, the analysts, led by Nikolaos Panigirtzoglou, believe that after the halving, some Bitcoin mining firms would move to regions with lower energy costs, such as Latin America. By making this move, such miners can repurpose inefficient mining setups and extract value from rigs that would otherwise be idle.

Deutsche Bank: No Significant BTC Rally after Halving

Meanwhile, Deutsche Bank analysts opined that BTC’s price will not rise as many expect after the halving event. Marion Laboure and Cassidy Ainsworth-Grace from Deutsche Bank stated that the impact of the halving has already been factored into current prices.

Notwithstanding, these analysts believe the price of BTC will remain high, particularly if US regulators approve spot Ethereum ETFs. They also mentioned that the growing use of layer-2 solutions and the buzz of activities in the decentralized finance (DeFi) space will improve the Bitcoin network’s practical applications.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.