JPM - Bitcoin's Price Rallies After Halving Completed
2024-04-22 09:37:45 ET
Bitcoin’s price is up 2% after the %Cryptocurrency’s highly anticipated halving event was completed on April 19.
Halving events occur automatically once every four years and reduce the available supply of Bitcoin by 50%.
The latest halving lowered the rewards earned by cryptocurrency miners to 3.125 Bitcoins from 6.25 previously.
The price of %Bitcoin (CRYPTO: ) was volatile heading into the halving but is now marching higher and trading right around $66,000 U.S.
After previous halving events in 2012, 2016 and 2020, the price of Bitcoin rose significantly.
However, several Wall Street analysts have questioned whether Bitcoin will be able to sustain a rally after the latest halving.
In recent notes to clients, analysts at %JPMorganChase (NYSE: ) and %DeutscheBank (NYSE: ) said that they expect Bitcoin’s price to fall in the coming months.
Overbought conditions, a decline in Bitcoin exchange-traded fund (ETF) inflows, and lax venture capital funding of crypto projects were the reasons cited for the pessimistic forecasts.
Still, despite the recent volatility, Bitcoin’s price has risen 50% this year and outperformed equity indices.
Bitcoin’s price hit an all-time high of $73,797.68 U.S. on March 14 of this year.