JPMorgan predicts that the price of Bitcoin could drop to a minimum of $42,000 after the halving in April.

According to BlockBeats news on February 29th, Morgan Stanley analysts predict that the upcoming Bitcoin halving event in April could cause the Bitcoin price to drop to a minimum of $42,000. This event will reduce the Bitcoin miners' reward from the current 6.25 BTC per block to 3.125 BTC, which will negatively impact the miners' profitability and cause the production cost of Bitcoin to rise. Morgan Stanley analyst Nikolaos Panigirtzoglou wrote in a report on Wednesday that the production cost of Bitcoin affects its price, and he expects the post-halving price to be $42,000. The analyst pointed out that the production cost of Bitcoin has already been a lower limit for its price in practice. "The center point of our estimated production cost is currently $26,500, which will mechanically double to $53,000 after the halving event." However, the analyst stated that the hash rate of the Bitcoin network may decrease by 20% after the halving, mainly due to less efficient mining machines exiting the mining operation due to decreased profitability, which will lower the estimated center point of production cost to $42,000 based on an average electricity cost of $0.05/kWh. "This estimate of $42,000 is also what we anticipate to be the level that Bitcoin prices may tend towards once the enthusiasm sparked by the halving event subsides after April," the analyst said. The current price of Bitcoin is around $62,820.