• The halving in April will negatively impact the profitability of bitcoin miner.
  • After halving, the bitcoin price may fall to $42,000.
  • The survival of larger, publicly listed mines is better.

BTC Price Index and Live Chart – CoinDesk”>(BTC) halving event, scheduled for April, will have a negative impact on the profitability of miners given the reduced rewards and higher production cost and ultimately could mean lower prices for the cryptocurrency, JPMorgan (JPM) said in a Feb. 28 research report.

The bank says that historically, the cost of bitcoin production has acted as an upper limit for BTC price. It believes this could drop to $42,000 if it is halved.

After halving, the bitcoin network could also see a 20% decline in its a href=”https://www.coindesk.com/tech/2021/02/05/what-does-hashrate mean-and why does it matter/”>u>hashrate/u>/a>. This would reduce BTC estimated production costs and price to $42,000. After halving the bitcoin network, it could see a 20% drop in its Hashrate, reducing the estimated BTC production cost to $42,000.

Read more: Bitcoin Halving is Coming, and Only the Most Efficient miners Will Survive

“This $42k estimate is also the level we envisage bitcoin prices drifting towards once bitcoin-halving-induced euphoria subsides after April,” analysts led by Nikolaos Panigirtzoglou wrote.

The bank stated that this has implications for those miners who have higher costs. Bitcoin miners who have lower electricity costs or more efficient mining rigs will likely survive, while those with higher production costs may struggle.

The authors concluded that larger publicly listed bitcoin mining companies are better positioned to survive in this “fight to survive,” adding that their market share will increase “in a manner similar to 2022”.

Bernstein: Bitcoin mining shares offer good entry point ahead of halving event

Aoyon A. Ashraf is the editor.