According to a report by JPMorgan, the upcoming bitcoin halving event in April/May 2024 could pose challenges for bitcoin miners. The halving event will reduce the issuance rewards for miners, resulting in a decrease in their revenue and an increase in bitcoin’s production cost. The report highlights higher electricity costs and increased competition as some of the issues miners will have to deal with. JPMorgan also questions whether miners will be able to maintain their production levels and if new miners will be interested in entering the industry. However, the report mentions that institutional interest in bitcoin mining and investments from companies like Galaxy Digital and Grayscale Investments have provided support to struggling miners. Nonetheless, the report suggests that without a sustained rise in the bitcoin price or a significant increase in transaction fees, the bitcoin hash rate may not continue to rise at the same pace after the halving event.
AI Sentiment: Negative
