The figure is down from previous estimates exceeding $50,000, and the drop was attributed to declining hashrate after the halving event, which cut the Coinbase reward miners receive per block found in half, as unprofitable miners exit the network.
JPMorgan’s analysts noted that there was a delayed exit, which was attributed to the launch of the Runes protocol, a new token creation method within the Bitcoin network that triggered a temporary spike in transaction fees, which in turn offset the halving’s impact.
The report emphasized the boost provided by Runes was short-lived, as transaction fee revenue has since fallen dramatically. As power consumption in the network has fallen more than its hashrate, it adds, unprofitable miners with inefficient operations exited.
JPMorgan’s report sees limited Bitcoin upside in the near future over several headwinds, which include a lack of positive catalysts and the disappearing impulse of retail crypto investors.
U.S. Senate Votes to Overturn SEC Rule on Crypto
Lawmakers in the United States Senate voted 60 to 38 to pass a joint resolution, H.J.Res. 109, aiming to overturn a Securities and Exchange Commission (SEC) rule affecting financial institutions doing business with cryptocurrency firms.
The resolution aims to nullify Staff Accounting Bulletin No. 121, which mandates that banks must keep customers’ digital assets on their balance sheets and maintain sufficient capital against them, something that many lawmakers and industry leaders see as stifling innovation.
The resolution previously cleared the U.S. House of Representatives and now faces a potential veto from President Joe Biden, who said he planned on vetoing the bill after expressing concerns about investor protection and the stability of the broader financial system.
Should the President veto the bill, it would return to Congress where it would require a two-thirds majority in both houses to override the veto.
