Bitcoin miners are facing a potential “stress test” in the next halving, according to a report by JP Morgan. The halving would reduce miners’ rewards from 6.25 to 3.125 BTC, increasing Bitcoin’s production cost. This poses a challenge for miners as it could increase their vulnerability, especially for higher-cost producers. However, institutional interest in bitcoin mining and investments from companies like Galaxy Digital and Grayscale Investments have provided some support to struggling miners. Tether, the largest stablecoin issuer, also plans to invest in a bitcoin mining site in El Salvador. Nonetheless, the price of Bitcoin and transaction fees would need to rise significantly to offset the lower block reward. JP Morgan concludes that it is unlikely the Bitcoin hash rate will continue to rise without a sustained increase in its price or a significant rise in transaction fees.

AI Sentiment: Neutral