You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Bitcoin Hashrate to Drop by 20% After Next Halving Event: JPMorgan

JPMorgan anticipates a possible 20% reduction in Bitcoin’s (BTC) Network Hashrate after the upcoming halving event in April 2024.

“Our projections suggest that around 80 EH/s, which is 20% of the total network hashrate, might be eliminated during the April ’24 halving as outdated equipment is phased out,” the study mentioned.

Every four years, Bitcoin undergoes a halving event, which reduces the rewards for Bitcoin miners by half.

The study also highlighted that, based on Bitcoin’s present value, the quadrennial block reward opportunity is about $20 billion.

Yet, it underscored a substantial decline of roughly 72% from just over two years prior, remarking:

“To give perspective, this amount reached its zenith at nearly $73 billion in April ’21 and has oscillated between $14 billion and $25 billion in the previous twelve months.”

JPMorgan Names Out Top Bitcoin Miners

JPMorgan’s report also suggested mining operators that provide superior value, considering factors like current hashrate, operational prowess, energy agreements, funded expansion strategies, and financial liquidity.

The bank conveyed that it will commence its coverage with these ratings and projected prices: CleanSpark (CLSK) is rated as overweight with a target of $5.50, Marathon Digital (MARA) is underweight aiming for $5, Riot Platforms (RIOT) is underweight with a $6.50 target, and Cipher Mining (CIFR) stands neutral.

Furthermore, Iris Energy (IREN) received an upgrade, moving from a neutral to an overweight stance.

JPMorgan has singled out CleanSpark as their prime choice, valuing its harmonious blend of size, growth prospects, energy expenditures, and comparative worth.

The study further emphasized that Marathon, despite being the leading mining operator, grapples with the steepest energy expenses and slimmest profit margins.

Contrarily, Riot benefits from modest energy charges and good liquidity, yet it stands as the priciest equity within JPMorgan’s analyzed group.

Cipher Mining, while flaunting the smallest energy costs among its competitors, is perceived to have limited growth potential.

Miners Turn to Hedging Options Amid Price Volatility

Reports suggest that Bitcoin miners are exploring hedging strategies to safeguard their income consistency given the cryptocurrency market’s fluctuations.

GSR, a prominent player in the trading and market-making domain, is introducing hedging instruments designed to grant miners a steadier revenue stream.

Through these offerings, GSR is striving to fortify the robustness of the $500 billion Bitcoin network, ensuring that major operators remain secure and aren’t threatened by market declines.

It’s pertinent to mention that miners typically retain the Bitcoin they extract, rather than instantly liquidating it. This retention serves as an inherent hedging mechanism, as miners speculate on the cryptocurrency’s value appreciating over the long run. Nonetheless, by choosing to hold onto their mined Bitcoins, these miners potentially miss out on immediate gains.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

EUBOF Advises EU On Blockchain And AI Integration
27.05.2024By
Arbitrum Community Supports Proposal to Allocate 200M ARB to Web3 Game Development
27.05.2024By
Normie Team Negotiates 90% Fund Return After $41.7M Market Cap Plunge
27.05.2024By

Latest news

EUBOF Advises EU On Blockchain And AI Integration
27.05.2024
Arbitrum Community Supports Proposal to Allocate 200M ARB to Web3 Game Development
27.05.2024
Normie Team Negotiates 90% Fund Return After $41.7M Market Cap Plunge
27.05.2024
Cristiano Ronaldo Teams Up with Binance for New NFT Collection Despite Ongoing Legal Battle
27.05.2024
Ethereum Layer 2 TVL Sets a New All-Time High at $47 Billion
27.05.2024
Bitcoin White Paper Returns to Bitcoin.org After Craig Wright Fails to Prove He is Nakamoto
27.05.2024
“I Am Very Positive and Open Minded To Cryptocurrency”: Trump
27.05.2024
Nearly 40% of Institutional Investors Had Crypto Exposure in 2023, Survey Reveals
24.05.2024
Forex and Crypto Investment Fraud Busted in Malaysia, Ten Arrested and Millions Seized
24.05.2024
Dormant Dogecoin Whale Becomes Active Again After A Decade
24.05.2024