Analysts at JPMorgan Chase (JPM) are predicting that Bitcoin’s (BTC) price will fall after the halving event that is expected within days.
In a research note to clients, JPMorgan said that it sees downside risk for the world’s largest cryptocurrency after the halving because the market is still in overbought territory.
The halving event that is expected to take place around April 20 will slow the rate of growth in Bitcoin’s supply by 50% and reduce the rewards BTC miners receive.
Past halving events have led to a sharp rise in the price of Bitcoin. But JPMorgan forecasts that the opposite will occur this time around.
In its latest crypto outlook, JPMorgan notes that venture-capital funding remains subdued despite the rally this year in cryptocurrencies, putting added downward pressure on Bitcoin.
Furthermore, JPMorgan says that the upcoming halving event will lead to an exodus of struggling Bitcoin mining companies.
“As unprofitable Bitcoin miners exit the Bitcoin network, we anticipate a significant drop in the hashrate and consolidation among Bitcoin miners with a highest share for publicly listed Bitcoin miners,” wrote JPMorgan Case in its note to clients.
Bitcoin is currently trading at $62,000 U.S. per token, up 40% on the year.
