JPMorgan and Deutsche Bank Analysts Do Not Expect BTC Price to Increase in Second Quarter: Report

Analysts of JP Morgan, the largest US bank, say that the price of Bitcoin has already fallen. This time the risk will depend mainly on Bitcoin mining, and not on the BTC price, as they wrote in the research report.

Bitcoin Mining, the quadrennial event that halves Bitcoin mining rewards, will take place between April 19 and 20.

JP Morgan’s underwriters said they did not expect a price increase after the crash because the event was “already overbought.” Experts are cautious, saying the benefits may already have been achieved.

According to Bloomberg, analysts wrote that the market is still overvalued. The report also emphasized that Bitcoin miners will be hit hard by this move.

Miners ready for pre-distribution can establish a foundation in advance and perhaps raise new capital.

However, “Although Bitcoin miners do not benefit from the Bitcoin network, we expect the sharp decline in hashrate and consolidation in Bitcoin mining to push a large portion of Bitcoin miners onto the network.”

However, according to the latest report from Bitwise, mining revenues decreased a month after each Bitcoin block was first mined. But then revenues increased significantly due to the rise of BTC and miners purchasing their operations.

JP Morgan analysts led by Nikolaos Panigirtzoglou wrote that following upcoming preparations, some Bitcoin mining companies may want to diversify their activities in low-energy regions such as Latin America. This is “recognizing their pointless mining and extracting residual value from these materials that would otherwise remain idle.”

Bitcoin’s decline is already visible in the market: Deutsche Bank

In the same vein, Deutsche Bank analysts also emphasized that no major protest was planned after the incident. They wrote that the second Bitcoin has already appeared in price.

Deutsche Bank analysts Marion Laboure and Cassidy Ainsworth-Grace say the market has already priced in the sector.

According to analysts, after three Bitcoin blocks in the past, hashrate dropped by 25%, 11% and 25%. Because some miners are purchased from the market and registered. Hasrate is the crypto industry’s benchmark for mining capacity.

“As mining rewards decrease, it becomes less profitable to participate in the process of guessing hashes and adding blocks to the blockchain. ”

Despite the price fluctuations, analysts are optimistic that the BTC price will remain high given the expected position of the Ethereum ETF.

The authors wrote: “Add to this the rise of virtual network-powering two-way solutions and DeFi activity, and the situation is starting to look very good for the Bitcoin ecosystem and the broader crypto space.”