JPMorgan: Bitcoin Halving is Similar to a Stress Test for Crypto Miners

Reading Time: < 1 minute

JPMorgan strategists Nikolaos Panigirtzoglou and his team have noted that a Bitcoin halving can have a positive effect on the cryptocurrency’s price, however miners could face difficulties due to the reduced block reward and increased costs of mining.

The bank’s officials stated that a change in electricity prices by one cent per kWh results in a cost change of $4,300, which doubles to $8,600 after the halving.

Additionally, they noted that a decrease in the hype about the halving also has a negative impact on the miners’ revenue.

Recent data reveals that the industry has sent over $1 billion worth of Bitcoin to exchanges in the latter part of June which is a daily record of such capital flow.