Halving is one of the most anticipated events in the crypto industry. The upcoming halving of Bitcoin [BTC] is projected to occur in April 2024. During the halving process, the mining reward for Bitcoin is halved, which holds relevance as it effectively reduces the number of newly generated BTC within the network. This event has a substantial impact on the Bitcoin network and is closely watched by community members.
The halving event holds significant importance for various reasons. The crypto community has high expectations that this event will potentially propel the king coin, Bitcoin, to reach new all-time highs or even exceed them. However, JPMorgan holds a distinct prediction for the Bitcoin network. According to JPMorgan, the retail demand for Bitcoin will continue to remain robust in the year leading up to the next halving event. This suggested that JPMorgan foresees sustained interest and investment from retail investors in the king coin, exhibiting a positive outlook for Bitcoin’s performance in the near future. The report read,
“….retail investor demand for bitcoin is likely to strengthen as we approach the April 2024 halving event.”
While acknowledging the recent surge in retail demand within the Bitcoin network, JPMorgan also linked this increase to the emergence of Bitcoin Ordinals and BRC-20 tokens. These new developments and innovations in the crypto space have likely played a role in driving the elevated interest and participation of retail investors.
Here’s how high Bitcoin is expected to go post halving
In the post-halving landscape, various members of the crypto community have been sharing their predictions. Amongst which $40K is a common prediction. Interestingly, JPMorgan also appears to align with this sentiment. This further shows a positive outlook for Bitcoin’s price potential following the halving event. Analysts led by Nikolaos Panigirtzoglou further said,
“[Halving] would mechanically double bitcoin production cost to around $40,000, creating a positive psychological effect,”
Another trader seems to be all in on Bitcoin. The trader took to Twitter and suggested that the king coin could reach $160K post-halving.
#Bitcoin
— Stockmoney Lizards (@StockmoneyL) June 4, 2023
First target 48k (before halving)
Second target 160k (after halving) pic.twitter.com/EnKxMgqSCs
At press time, Bitcoin was trading for $26,766 with a 1.56% daily drop. Additionally, the asset is 61.07% below its all-time high of $68,789.