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“Bitcoin Halving: JPMorgan and Deutsche Bank Foresee Limited Price Rally, Focus Shifts to Mining Implications”

Analysts from financial giants JPMorgan Chase & Co and Deutsche Bank AG are anticipating no significant rally for Bitcoin following the upcoming halving, stating that the market has already largely factored in this event. The focus is now turning towards the impact on Bitcoin mining operations.

JPMorgan Chase & Co and Deutsche Bank AG suggest that the forthcoming halving, a key software update occurring every four years, has been mostly priced in by the market. Consequently, attention is shifting towards how mining activities will be affected. There’s an expectation of consolidation within the publicly-traded Bitcoin mining sector, with stronger firms poised to gain market share as less profitable miners exit the network.

Analysts at JPMorgan highlight that publicly-listed Bitcoin miners are in a favorable position to capitalize on the changing landscape, thanks to better access to funding, particularly through equity financing. This enables them to expand operations and invest in more efficient equipment.

Similarly, Deutsche Bank analysts also predict a muted response in Bitcoin prices post-halving, noting that the network’s algorithm has already incorporated the update.

The halving, which slashes the mining reward by half every four years, is scheduled to occur on Apr. 19 at 22:07 (UTC), as per data from NiceHash. Historical trends indicate a decline in the hashrate shortly after Bitcoin halvings, signaling a reduction in mining capacity as less profitable miners exit the market, according to Deutsche Bank.

Despite expectations of limited price volatility, Deutsche Bank maintains an optimistic outlook on Bitcoin’s trajectory. They cite potential catalysts such as the anticipated approval of Ethereum exchange-traded funds (ETFs), adjustments in central bank interest rates, and regulatory changes, all of which could create favorable conditions for the broader crypto ecosystem.

Fred Thiel, CEO of Marathon Digital Holdings, notes that the firm’s break-even point after the halving would be approximately $46,000 per Bitcoin to remain profitable. At the time of reporting, Bitcoin (BTC) was trading at $64,574, reflecting a 12.8% decrease.

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