According to CoinDesk, Morgan Stanley believes that the halving of Bitcoin in April will have a negative impact on miners’ profits due to reduced rewards and increased production costs. It is estimated that the price of Bitcoin will fall to $42,000.
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Bitcoin prices to face correction after April
High costs will affect miners
Morgan Stanley points out that the production cost of Bitcoin has always been the lower limit of its price. Currently, the bank estimates that the center point of Bitcoin’s production cost range is around $26,500. After the halving, the cost will double to $53,000. The report states that the hash rate of the Bitcoin network may also decrease by 20%, which will lower the estimated production cost and price of BTC to $42,000.
Analyst Nikolaos Panigirtzoglou stated in the report:
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Once the optimism triggered by the Bitcoin halving in April fades, the price of Bitcoin will tend towards this level, and $42,000 is our estimated price.
Morgan Stanley also pointed out that the halving will also have an impact on miners with higher costs. Bitcoin miners with lower electricity costs and higher machine efficiency may survive, while miners with higher production costs may be in trouble.
Larger publicly listed Bitcoin miners are more capable of winning in this “survival battle”, and their market share will increase after the halving.
Previously, asset management company CoinShares also released a mining report, stating that the average cost of Bitcoin for mining enterprises after the halving will be $37,856. If the Bitcoin price remains below $40,000 in the long term, only five mining enterprises, namely Bitfarms, Iris, CleanSpark, TeraWulf, and Cormint, will be able to successfully profit and operate.
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CoinShares Report: Bitcoin mining enterprise cost after halving is $37,800, only 5 enterprises can profit
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Morgan Stanley
Bitcoin
Bitcoin miners
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