JPM - Bitcoin's Halving Event Expected This Weekend

2024-04-19 10:07:21 ET

The price of %Bitcoin (CRYPTO: ) is rising with the highly anticipated %Halving event expected to take place over the weekend.

The price of Bitcoin jumped as much as 5% over the last 24 hours and is currently trading at $65,400 U.S. as cryptocurrency bulls prepare for the halving event that is anticipated on Saturday (April 20).

The halving will see the rewards for mining Bitcoin reduced by 50%. Halving events occur automatically every four years and are written directly into Bitcoin’s code.

Past halving events have led to a sharp rise in Bitcoin’s price, but this time around it has led to a decline and increased volatility.

Analysts say the price of Bitcoin is being negatively impacted by geopolitical instability in the Middle East, as well as risk avoidance among investors as expectations for interest rate cuts this year decline.

At the same time, flows into spot Bitcoin exchange-traded funds (ETFs) have turned negative in recent weeks after booming in February and March of this year.

In a recent note to clients, analysts at %JPMorganChase (NYSE: ) forecast that Bitcoin’s price will drop after the halving event.

The JPMorgan analysts see downside risk for BTC after the halving because the crypto market is currently in overbought territory.

Despite the current volatility, Bitcoin’s price is still up nearly 50% on the year.