Crypto News: JPMorgan Analysts Cast Doubt on Crypto Rally

JPMorgan Analysts Cast Doubt on Crypto Rally

159 Listen to this article JPMorgan analysts have voiced skepticism regarding the sustainability of the recent surge in the crypto […]

Latest News

Listen to this article

JPMorgan analysts have voiced skepticism regarding the sustainability of the recent surge in the crypto market, asserting that the “crypto rally looks overdone.”

In a report released on Wednesday, analysts led by Nikolaos Panigirtzoglou highlighted two primary factors they believe have contributed to the recent crypto market rally.

Read Also: Expert Predicts $500.50 for $XRP by 2024 as JPMorgan’s Alleged 7.5% XRP Stake Surfaces

Spot Bitcoin ETF Approval

The prospect of a spot Bitcoin ETF approval in the U.S. was noted as a potential catalyst for the surge. This approval is seen as a means to attract new money into crypto markets and possibly influence a more lenient approach from the Securities and Exchange Commission (SEC) in the future.

Analysts’ Skepticism

However, the analysts expressed doubt about the feasibility of these factors. They contended that rather than fresh capital entering the crypto industry for newly-approved ETFs, a more plausible scenario is the shift of existing capital from products such as the Grayscale Bitcoin trust, Bitcoin futures ETFs, and publicly listed Bitcoin mining companies into the newly-approved spot Bitcoin ETFs.

Read Also:  Bank of England Unveils Plan for Regulating Stablecoins

Read Also: How To List Crypto on Robinhood App? Complete Guide

Global Precedents

Additionally, the analysts pointed out that spot Bitcoin ETFs in Canada and Europe, although already available, have generated minimal interest from investors since their launch, leading to skepticism about the influx of fresh capital into newly approved spot Bitcoin ETFs in the U.S.

The second major factor influencing the recent crypto rally, according to the analysts, is the SEC’s setbacks in legal cases against Ripple and Grayscale. Despite these legal defeats, the analysts expressed uncertainty about a significant easing of crypto regulations in the future, emphasizing the industry’s current lack of regulation.

Read Also: Difference Between Meme Coin and Crypto Coin

Pending U.S. Regulations

They noted that U.S. crypto industry regulations are still pending, and recent legal cases are unlikely to sway the stance of lawmakers, especially considering the lingering impact of the FTX fraud case.

Bitcoin Halving Event

Addressing the optimism surrounding the upcoming Bitcoin halving event in April/May 2024, which is anticipated to reduce the supply of new bitcoins and potentially drive up prices, the JPMorgan analysts dismissed the notion.

Already Priced In

They argued that the halving event is already priced into the market, emphasizing the predictability of its effects on the Bitcoin price.

Read Also: BlackRock and JPMorgan’s Strategic Moves Hint at Potential Crypto Market Rally


The analysts highlighted that examining the Bitcoin production cost post-halving, considering current hash rates and difficulty, suggests a rise in production cost from $21,000 to approximately $43,000. However, they asserted that the current price of around $35,000 aligns with an expected 20% drop in hash rates, indicating that the halving event’s impact is already largely reflected in the current Bitcoin price.

Read Also:  'Crypto winter' may be over as Bitcoin halving approaches - Morgan Stanley

For the Latest Crypto News follow the Coinography and Subscribe our YouTube channel or follow us on social media platforms like Twitter, Facebook, Instagram and LinkedIn.

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

Would love your thoughts, please comment.x
Scroll to Top
Shiba Inu Burn Spike Raises Price Over 1300% Impact Concerns GBTC ETF Hindering Bitcoin’s Path to $100,000 Bitcoin News Ethereum Futures ETF with 2x Leverage Filed by Defiance Pump.Fun Boosts Memecoin Market: $5.2M in 38 Days Charles Hoskinson Highlights Cardano’s Progress Despite Criticism Solana DEX Booms, InQubeta Presale Tops $13M Cryptocurrencies to Watch: 16 Promising Options for 2024 Crypto AI Trading Bots: Best Picks for 2024 Cardano’s Top 5 Tokens for April 2024 Investment Crypto Highlights: 12 Best Bitcoin and Crypto Casinos for 2024 Solana (SOL) Meme Coins Lead the Way in Current Rally Bitcoin Runes Heading to Magic Eden Post Ordinals Bet Success Dogwifhat (WIF) Climbs to 3rd Spot, Tops PEPE at $4 Coinbase Announces Exciting New Altcoin Listings Altcoin Picks: 3 Hidden Gems to Watch Out for in April Binance Won’t Go Bankrupt Even if All Users Initiate Withdrawals: CZ What is the difference between Crypto and Bitcoin? Discover 5 Top Meme Coins to Consider in 2024 Binance Access Blocked in Philippines Over Unlicensed Operations 15 Best Crypto Presales to Invest In For 2024