Morgan Stanley warns: Bitcoin may fall back to $42,000 after halving, negatively impacting miners' profitability.

In a recent report, JPMorgan Chase stated that the highly anticipated Bitcoin halving event in April is expected to negatively impact the profitability of Bitcoin miners due to reduced rewards and increased production costs. They warned that the price of Bitcoin could drop to $42,000, a decrease of about 37% from the current price of $68,332.11. Historically, the production cost of Bitcoin has always been the lower limit of its price. JPMorgan Chase estimates the midpoint of the production cost range to be $26,500, which will double to $53,000 after the halving. Analyst Nikolaos Panigirtzoglou estimates that the hash rate of the Bitcoin network will decrease by 20% after the halving, reducing the estimated production cost and base price of Bitcoin. The report on Thursday stated, "The estimated $42,000 is also the level we expect, once the optimism triggered by the Bitcoin halving fades after April, the price of Bitcoin will fluctuate towards this level." What does this mean for Bitcoin miners? "Miners with lower electricity costs and higher drilling efficiency may survive, while those with higher production costs will struggle," the analyst said.