JPMorgan (JPM) said in a research study Thursday that the bitcoin (BTC) hashrate is continuing to reach new all-time highs as competition among miners heats up ahead of the next halving event, which is due in the second quarter of 2024.
The halving will cut issuance rewards from 6.25 BTC to 3.125 BTC, “implying a reduction in miners’ revenues while effectively increasing bitcoin’s production cost at the same time,” according to the report.
“While bitcoin halving is seen as having a positive effect on the bitcoin price given that the production cost has historically acted as a floor, it poses a challenge for bitcoin miners,” analysts led by Nikolaos Panigirtzoglou stated.
