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Bitcoin The much anticipated halving event is about to take place. More than 24 hours As of this writing, it halves the reward for Bitcoin miners and reduces the creation of new coins.
Limiting supply appears to be a move to stimulate the wholesale market, but America's biggest bank says it's not easy. In a Thursday note cited by Bloomberg, JP Morgan analysts said the oldest and largest digital asset is already overbought.
“We do not expect the price of Bitcoin to increase post-halving as it has already been priced in,” they concluded, according to Bloomberg.
The financial giant added that the lack of venture capital funding in the crypto space contributes to the low price of BTC.
of Cut in half It's an event baked into the Bitcoin code. Blockchain extensions happen every four years based on continuous growth.
Miners– Large operations that carry out transactions on the network – are rewarded with Bitcoins by developing new coins. On Saturday, their reward will drop from 6.25 BTC to 3.125 BTC.
This means that miners must work efficiently to remain profitable. A JP Morgan report says the big players will be able to withstand the change.
“Publicly listed bitcoin miners are well positioned to take advantage of the new environment, primarily due to their ability to access funding and, in particular, equity financing,” the report said. This helps them grow their business and invest in more efficient equipment.
It also means that few bitcoins are available on the market – which some industry observers to believe It increases the long-term value of the property.
Others, including JP Morgan analysts led by Nikolaos Panigirtzoglou, say the market has already absorbed the potential impact of the halving.
Bitcoin prices fell sharply last Friday and have continued to decline after rallying this week. Huge liquid In the futures market, a war in the Middle East, and comments from Federal Reserve Chairman Jerome Powell led to the sell-off.
of The price of Bitcoin It is now at $63,476, a seven-day drop of 9%, CoinGecko data shows. Last month, it hit a high of $73,737 per coin.
Space experts said. Decrypt This volatility and high price increases are not only to be expected before a halving – it has happened every time.
Edited by Ryan Ozawa.
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