In recent events, JPMorgan analysts are making waves in the crypto space by suggesting that the highly anticipated pre-halving rally for Bitcoin may have already been initiated. JPMorgan analysts share an interesting perspective as the crypto market awaits the halving event scheduled for April 2024. Let’s delve into the details and implications of this analysis.
The “Pre-Halving Rally”
JPMorgan’s leading analysts, led by Nikolaos Panigirtzoglou, argue that the impact of the halving is already priced in. This perspective challenges the conventional narrative and raises questions about the sustainability of the current move.
While the JPMorgan team predicts a potential maximum value of $54,000 to $58,000 for Bitcoin before April 2024, Michaël van de Poppe believes in a similar sentiment. Van de Poppe anticipates a peak for Bitcoin within the $54,000 to $58,000 range, emphasizing the likelihood of altcoins taking the spotlight before a potential correction.
Market Trends and HODLer Behavior
Examining recent market trends, JPMorgan analysts note a shift in the movement of Bitcoin, with a significant flow observed from smaller wallets, surpassing that of institutional investors. The current struggle of Bitcoin to stay above $51,000 is also highlighted, potentially being the first bearish week for Bitcoin since the recent surge in January.
JPMorgan’s analysis extends beyond Bitcoin, outlining three crucial events in the crypto space: the Bitcoin halving event, the next major Ethereum network upgrade, and the potential approval of Ethereum spot ETFs. While the first two catalysts might already be priced in, the likelihood of approval for spot ETFs is around 50%.
Tether and Regulatory Concerns
From a broader market perspective, JPMorgan analysts show skepticism about Tether (USDT), emphasizing its market share growth among stablecoins. The analysts highlight potential risks associated with Tether’s success, citing concerns over regulatory compliance and transparency. Stablecoin issuers aligning with existing regulations, such as USDC (backed by Coinbase) and PYUSD (backed by PayPal), are posited to benefit from potential increased regulatory oversight on stablecoins.
As the crypto community digests JPMorgan’s perspective on the pre-halving rally for Bitcoin, the market is full of anticipation and scepticism. Whether the pre-halving bull run has truly concluded or is just a precursor to more significant movements remains to be seen.
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