JPMorgan said Thursday that the bitcoin (BTC), hashrate is continuing to reach new highs, as competition among miners intensifies ahead of the next halving, which is expected in second quarter 2024.

The report stated that the halving would reduce the issuance reward to 3.125 BTC (from 6.25 BTC), “implying a decrease in the miners’ revenue, while also increasing the production cost of bitcoin at the same time.”

While the halving of bitcoins is viewed as having a positive impact on the price, given that the production costs acted historically as the floor, it presents a challenge to bitcoin miners,” wrote analysts led by Nikolaos Pantigirtzoglou.

Hashrate refers to the total combined computational power used to mine and process transactions on a proof of work blockchains such as Bitcoin.