FameEX Hot Topics | JPMorgan Says Bitcoin Halving and Ethereum Upgrade Already Factored into Prices

JPMorgan Chase has delved into the dynamics expected to influence cryptocurrency prices in the forthcoming months, identifying three principal catalysts. The global investment bank's analysts perceive the Bitcoin halving event and the imminent major upgrade of the Ethereum network as already being factored into market prices.

JPMorgan Chase, a leading global investment bank, has provided insights into the factors it believes will shape cryptocurrency prices in the near future. The firm has highlighted a resurgence in interest from retail investors as a driving force behind the recent surge in popular cryptocurrencies such as Bitcoin (BTC) and ETH (ETH).

Led by global market strategist Nikolaos Panigirtzoglou, the JPMorgan team has observed that retail investor activity, particularly from smaller wallets, has significantly surpassed institutional flows, as indicated by on-chain data adjusted for new spot bitcoin exchange-traded funds (ETFs). "The resurgence of retail interest in February possibly reflects anticipation of three primary crypto catalysts in the coming months: the Bitcoin halving event, the upcoming significant upgrade of the Ethereum network, and the potential approval of spot ethereum ETFs by the SEC in May," stated the JPMorgan strategists. They further noted, "We believe that the first two catalysts are largely priced in, while for the third catalyst we only see a 50% chance."

The U.S. Securities and Exchange Commission (SEC) is anticipated to decide on the approval of a spot ethereum ETF in May. Despite SEC Chairman Gary Ganser's consistent avoidance of categorizing ether as a security, which has fueled skepticism regarding spot ethereum ETF approval, there are hopes within the industry for its approval in May, with Standard Charter Bank among the optimists.

Additionally, the JPMorgan analysts highlighted recent reports from Block Inc., Paypal Inc., and Robinhood Markets Inc., which indicated net positive bitcoin purchases by their customers in Q4 2023. This marks a significant reversal from Q3's trend of sales, suggesting a shift in sentiment and investment behavior among retail investors.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.