JPMorgan predicts that Bitcoin price will adjust after halving

In a recent report, JPMorgan predicted that after the upcoming halving event, the price of Bitcoin will drop to only $42,000.

During the first two months of 2024, the digital asset sector saw Bitcoin explode, approaching its all-time high of $69,000, increasing investor interest.

Experts are monitoring the upcoming Bitcoin halving event to assess its impact on BTC price. Although many expect a reduction in token circulation to increase the price of BTC, JPMorgan predicts a drop to $42,000 after the halving event.

Analyst Nikolaos Panigirtzoglou said the drop is expected to come after the “euphoria” of the halving expected at the end of April. The report points to a reduction in advisor rewards and production costs. Higher yields are the main factors influencing Bitcoin's downtrend.

As reported by The Block, Nikolaos Panigirtzoglou said:

“The actual cost of producing bitcoin acts as a limit to bitcoin price decline. Our forecast estimates the production cost center at $26,500, which will increase to $53,000 after the halving.”

The analyst also predicted:

“$42,000 is the price we expect BTC to reach after the halving impact from April.”

Bitcoin's halving event is predicted to take place on April 19, which is 48 days from the time of writing.

JPMorgan's report also shares the same opinion as COO Matrixport. Specifically, Matrixport co-founder and COO Daniel Yan warned cryptocurrency investors about market sentiment, pointing out that they need to be careful in the near future. He predicts a positive correction of about 15% by the end of April.

In a parallel development, Matrixport Co-Founder and COO Daniel Yan warned cryptocurrency investors about market sentiment, pointing out that they need to be cautious going forward. He predicts a positive correction of about 15% by the end of April.

Daniel's predictions are built on the analysis of the current market situation and upcoming events. He emphasized that March could be particularly sensitive to the impact of major economic factors, including the Fed meeting and the end of the Bank Fixed Financing Program (BTFP).

According to the expert, the Dencun mainnet update and the upcoming Bitcoin halving event could also affect market dynamics.

However, Daniel admits that predicting the timing and extent of adjustments is a big challenge.

“It is not easy to know whether the correction will come from $65,000, $60,000 or current levels,” Daniel added.

Despite the uncertainty, Daniel advises long-term asset holders not to worry too much about short-term market fluctuations.

​El Salvador profited 40% from Bitcoin gamble

El Salvador President Nayib Bukele announced that if he sold all the Bitcoin he held, the country would have a profit of more than 40%.

There were times when this concern increased when the price of Bitcoin plummeted, leaving El Salvador on the brink of default. However, the pro-Bitcoin president still refuses to admit his mistakes.

“When Bitcoin prices were low, they continuously wrote thousands of articles about our losses,” President Bukele shared on X. “Now that Bitcoin is skyrocketing, if we sell right now, we will profit more than 40 million. %”.

Bukele also noted that recently, they got more Bitcoin mainly from the citizenship program. Accordingly, those who "donate" Bitcoin to the government will be offered citizenship. However, he did not disclose this number. Bukele also said he has no intention of selling Bitcoin.

El Salvador holds a total of 2,381 Bitcoins and has an average purchase price of 44,292 USD.