JPMorgan Chase believes that the Bitcoin halving event and subsequent major upgrade of the Ethereum network are already being factored into crypto prices, with a resurgence in retail investor interest driving the recent surge in the popular cryptocurrency.
JPMorgan Chase has discussed the three main catalysts driving crypto prices in the coming months. The global investment bank analyst believes that Bitcoin's halving event and the subsequent major upgrade of the Ethereum network are largely priced in.
JPMorgan on Catalysts Impacting Crypto Prices
Global investment bank JPMorgan Chase has provided its views on three key catalysts it believes will drive cryptocurrency prices in the coming months.
The JPMorgan team, led by global market strategist Nikolaos Panigirtzoglou, explained that on-chain data, adjusted for spot bitcoin exchange-traded funds (ETFs), showed retail investor (small wallet) activity significantly outpaced institutional flows.
The company also pointed to the resurgence of retail investors' interest in crypto as the driving force behind the surge in popular cryptocurrencies such as bitcoin (BTC) and ether (ETH).
We believe the first two catalysts are mostly plausible, while for the third we see only a 50% chance.
"The resurgence of retail impulses in February may reflect the anticipation of three major crypto catalysts over the coming months: Bitcoin's halving event, the next major upgrade of the Ethereum network, and the prospect of approval of a spot ethereum ETF by the SEC in May," JPMorgan strategists wrote, adding: The US Securities and Exchange Commission (SEC) is expected to make a decision on whether to approve a spot ethereum ETF in May. However, SEC Chairman Gary Ganser has consistently refrained from explicitly stating that ether is not a security, leading to skepticism of the approval of a spot ethereum ETF.
However, some believe that securities regulators will approve a spot ethereum ETF in May, including Standard Charter Bank JPMorgan analysts further pointed out recent reports from Block Inc, Paypal Inc, and Robinhood Markets Inc. which showed net positive bitcoin purchases by their customers in Q4 2023, a significant change from Q3 sales. This surge in retail activity coincided with Coinbase, a large company in the United States.
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