JPM - JPMorgan: Bitcoin Price May Drop After Halving Despite Miner Shakeup | Benzinga
As Bitcoin inches closer to its highly anticipated halving event, analysts at JPMorgan (NYSE:JPM) are throwing cold water on expectations of a subsequent price surge.
What Happened: Their report, released on Wednesday, argues that the halving has already been priced into the market, potentially leading to a post-halving price decline, The Block reported.
“We don’t expect a price increase because the halving is likely factored into the current price point,” stated Nikolaos Panigirtzoglou, lead analyst at JPMorgan, echoing previous pronouncements.
They identify several factors supporting their bearish outlook.
Overbought Market And High Valuation
JPMorgan’s analysis of open interest in Bitcoin futures suggests the market is currently “overbought,” indicating potential overvaluation.
Furthermore, Bitcoin’s price sits significantly above JPMorgan’s volatility-adjusted target of $45,000 when compared to gold.
This, coupled with the fact that the current price exceeds their projected post-halving production cost of $42,000, fuels ...