JPM - JPMorgan Says Bitcoin Halving Event Is 'Priced In'
2024-02-28 09:49:46 ET
Analysts at %JPMorganChase (NYSE: JPM) are downplaying the upcoming %Bitcoin () halving, saying the event scheduled to take place in April is already priced into the %Cryptocurrency .
JPMorgan’s sobering outlook for Bitcoin comes as the price of the largest crypto by market capitalization crosses $57,000 U.S., its highest level in more than two years.
The analysts at JPMorgan say a resurgence of retail investor interest in cryptocurrencies is driving the current rise in Bitcoin, as well as smaller digital coins and tokens.
The JPMorgan team adds that on-chain data shows that retail investors are allocating money to the new crop of spot Bitcoin exchange-traded funds (ETFs) at a much faster rate than institutional Investors.
The JPMorgan analysts further pointed to a recent surge in retail activity at %Coinbase (NASDAQ: COIN), a major U.S. crypto exchange.
The analysts also point to a rise in investment activity among more speculative meme tokens such as %Dogecoin ().
In a note to clients, JPMorgan states: “The revival of the retail impulse in February perhaps reflects the anticipation of three main crypto catalysts over the coming months: the Bitcoin halving event, the next major upgrade of the Ethereum network, and the prospect of approval of spot Ethereum (ETH) ETFs by the SEC in May… We believe that the first two catalysts are largely priced in, while for the third catalyst we only see a 50% chance.”
A halving event occurs every four years and sees the production of Bitcoin cut in half.
JPMorgan’s stock has risen 28% in the last 12 months to trade at $183.45 U.S. per share. The price of Bitcoin has gained 143% in the past year.