JPMorgan Cautions Against Future BTC Prices

As Bitcoin dances in the range of $50,000–$52,000, all eyes are on the looming halving event scheduled for April 2024. However, banking giant JPMorgan is casting a shadow of caution, suggesting that the anticipated effects of the halving may already be factored into the current price. 

Interestingly, this sentiment challenges the expectations of enthusiasts who were hoping for a substantial price explosion post-halving. Recently, JPMorgan CEO, Jamie Dimon, advised investors to “don’t get involved” in BTC investments.

JPMorgan on BTC Halving

Despite JPMorgan’s skepticism, retail investors are making a comeback to the crypto market after a brief hiatus in January. Encouraged by recent surges in Bitcoin and Ethereum, individual investors are displaying renewed enthusiasm. 

Notably, the flow of Bitcoin into smaller wallets has surpassed institutional investors, a trend identified by JPMorgan’s analysts, led by Nikolaos Panigirtzoglou. This shift in ownership dynamics occurs against the backdrop of the introduction of new spot Bitcoin ETFs, adding an intriguing layer to the market dynamics.

Priced-In

The JPMorgan analysts attribute the resurgence of retail investors in February to the anticipation of significant upcoming events in the crypto industry, including the Bitcoin halving, Ethereum’s impending update, and the potential approval of spot Ethereum ETFs by the SEC in May. 

However, the analysts caution that the first two events may already be priced into the market, while the third remains uncertain with a 50% chance of approval.

Bitcoin Losing Steam

As Bitcoin’s current rally shows signs of losing steam, the market faces the possibility of a cooldown. While the price struggles to maintain levels above $51,000, market analysts are divided on the potential impact of the approaching halving event. 

Some suggest a continuation of the bullish trend, with predictions ranging from a post-halving surge to $273,000, while others, like PlanB, argue against a significant crash below $40,000.

Dessislava Aubert, an analyst from analytics firm Kaiko, highlights the increasing leverage in the market, with BTC open interest reaching $11 billion for the first time since 2021. Traders appear to be betting heavily on a short- to medium-term price increase. However, the crypto market’s notorious unpredictability emphasizes the absence of guaranteed outcomes.

JPMorgan and Digital Assets

As reported earlier, JPMorgan cast doubt on the likelihood of a spot Ethereum ETF gaining approval by May, expressing a cautious sentiment.

The firm recently introduced its proprietary blockchain-powered tokenization platform called the Tokenized Collateral Network (TCN).