JPMorgan analysts against the tide: according to them, the halving of BTC will bring a price drop...
JPMorgan analysts, led by Nikolaos Panigirtzoglou, anticipate a significant downturn for Bitcoin following the highly anticipated halving event scheduled for April. The halving of Bitcoin occurs roughly every four years, reducing miner rewards. Currently, miners receive 6.25 Bitcoin per block they confirm, but after the halving, this reward will be halved to 3.125 Bitcoin per block.
This reduction in rewards could lead to increased mining costs and reduced profitability, potentially driving Bitcoin's price down to $42,000, according to JPMorgan analysts. They predict that the estimated range could double to around $53,000 after the halving. Additionally, a 20% reduction in Bitcoin's hashrate is expected, as less efficient mining facilities are likely to be abandoned, further impacting mining costs.
However, despite JPMorgan's bearish outlook, Hunter Horsley, CEO of Bitwise, remains bullish on Bitcoin's future, forecasting a price of $250,000 per Bitcoin sooner than expected. Various market metrics for Bitcoin support bullish sentiments, indicating a potential surge in its value.
Amid these contrasting forecasts, Bitcoin has returned to trading above $62,000, following a recent peak at $64,000, the highest level in the past two years.
Green Bitcoin, a new project, offers users the opportunity to profit from Bitcoin price predictions. Through its innovative "Gamified Green Staking" system, users can stake the native token $GBTC and earn rewards by accurately predicting Bitcoin's price movements.
Operating on the Ethereum blockchain and utilizing the Proof of Stake (PoS) mechanism, Green Bitcoin is more energy-efficient compared to Bitcoin's Proof of Work (PoW) model. The Ethereum blockchain provides security and efficient execution of smart contracts, enabling $GBTC holders to maintain their tokens long-term.
With a total token supply of 21 million, similar to Bitcoin, Green Bitcoin allocates 40% to the presale, 27.50% for staking rewards, 17.50% for marketing, 10% for liquidity on CEX and DEX exchanges, and 5% for community rewards. This distribution is designed to support the long-term value of the native token.
Currently in the presale phase, Green Bitcoin has already raised over $1 million, with $GBTC available at a price of $0.53, expected to increase to $0.60 upon listing.
Posted Using InLeo Alpha
It occurs to me that a reduced hashrate may not be such a problem for Bitcoin as they think.
With so many BTC being hoovered up by large financial institutions, I wonder if they (and other holders) just sit on them as a store of value and speculative investment.
The number of actual transactions could drop through a combination of BTC locked up in long-term wallets plus a more expensive price putting it out of reach of retail investors.