Bitcoin is predicted to fall to $ 42,000

Experts at the international investment bank JPMorgan expect bitcoin to drop to $ 42,000. The first cryptocurrency’s value will decline after the halving, which is due in April.

According to JPMorgan analysts, the price decline will be influenced by the impact of a decrease in mining rewards BTC $98,528.06 Bitcoin -0.24% Market capitalization $1.95 trillion VOL. 24 hours $4.21 billion . A negative role is played by the growing costs of mining companies to upgrade equipment.

JPMorgan believes that after halving, cryptocurrency mining will become more consolidated, with only large players remaining and small companies forced to leave the market. The bank’s analysts emphasized that the departure of these less efficient companies from the industry will cause a decrease in the bitcoin hashrate by about 20%.

Earlier, Nikolaos Panigirtzoglou, a senior analyst at JPMorgan Chase, named three main factors that will affect the value of bitcoin and ether in the coming months. These include a reduction in the reward for bitcoin miners, a major upgrade to the Dencun ethereum network, and the possible approval of spot ETFs on ETH in May.

Michael Novogratz, CEO of Galaxy Digital Holdings Ltd. Michael Novogratz, CEO of Galaxy Digital Holdings Ltd. In an interview with Bloomberg TV, Novogratz spoke in detail about his expectations for the BTC. He predicted that, despite the impressive growth of the digital currency in 2024, a significant rise to «new, unprecedented heights» will be preceded by a correction.