The upcoming Bitcoin halving event scheduled for April could trigger a sharp decline in the price of bitcoin, according to JPMorgan analysts.

The halving event will reduce Bitcoin miners' rewards from the current 6.25 BTC per block to 3.125 BTC and this reduction will negatively impact miners' profitability and lead to a higher bitcoin production cost, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Wednesday. The bitcoin production cost influences its price, with the analysts predicting it to be around $42,000 post halving.

"The bitcoin production cost has empirically acted as a lower bound for bitcoin prices," the analysts said. "The central point of our estimated production cost range stands at $26,500 currently, which would mechanically double post halving …