Hassan Maishera
TL;DR
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BTC is trading around $62k after adding less than 1% to its value.
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The Bitcoin halving is 18 hours away and some experts predict BTC’s price will dump post-halving.
BTC Could Experience a Dum Post-halving: JPMorgan
One of the greatest events in the cryptocurrency space is upon us again. The Bitcoin halving, which occurs once every four years, is set to take place in the next 18 hours. The bitcoin block reward will decrease from 6.25 to 3.125 coins once the halving is completed later today.
As the halving approaches, Bitcoin continues to underperform. BTC is down by 16% from the all-time high price of $73,755 it set last month. At press time, BTC is trading at $61,989, up by 1% in the last 24 hours. Over the last seven days, BTC has lost 12% of its value and could record further losses in the short term, according to analysts at JPMorgan.
JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Wednesday, that,
"We do not expect bitcoin price increases post-halving as it has already been priced in. In fact, we see a downside for the bitcoin price post-halving for several reasons."
The analysts cited some reasons why they believe BTC will dump and they include bitcoin still being in overbought conditions. Furthermore, BTC remains above the bank’s volatility-adjusted price of $45,000 compared to gold and remains above its projected production cost post-halving of $42,000, the analysts added.
Finally, the analysts cited the tepid crypto venture capital funding this year to date as one of the catalysts that could drag down bitcoin price post-halving. The poor VC funding in the space comes despite the market’s resurgence this year.
Major altcoins are also underperforming, with Ether still trading below $3k. The world’s second-largest cryptocurrency by market cap has lost 15% of its value this week and could record further losses if the BTC prediction plays out.
