As the cryptocurrency market anticipates the upcoming Bitcoin halving in 2024, past patterns have generally seen a positive price trend following such events. Investors have been hopeful that the proximity to the crypto event could again push the price of Bitcoin up, especially after it has already reached new all-time highs in 2024. However, experts are tempering expectations for a significant rally post-halving.
According to a Bloomberg report, analysts from both JPMorgan and Deutsche Bank do not foresee major price changes following the halving, emphasizing that the effects of the software update have already been priced into the market. “Publicly listed Bitcoin miners are well positioned to benefit from the new environment, mainly due to better access to financial resources, particularly in terms of equity financing. This assists them in scaling their operations and investing in more efficient equipment,” JPMorgan experts were quoted in the report.
Similarly, specialists at Deutsche Bank are not predicting a Bitcoin rally either and pointed out that the network’s algorithm has already accounted for the update. Indeed, the market’s price movements have been modest immediately following the event, with Bitcoin currently hovering around the $66,000 mark as of April 22, 2024.
Cryptocurrency Prices Expected to Remain High
Despite not anticipating significant price jumps for Bitcoin, experts also do not expect the cryptocurrency to lose much value. With the anticipation of approvals for spot Ethereum ETFs, central bank interest rate cuts, and regulatory changes, Deutsche Bank still forecasts high Bitcoin prices. However, the halving could influence the locations of miners. Both JPMorgan and Deutsche Bank suggest, according to Bloomberg, that some Bitcoin mining companies might try to diversify into regions with lower energy costs like Latin America or Africa to find inefficient mining supplies and salvage some residual value from otherwise unused equipment.