FameEX Hot Topics | JPMorgan Indicates Bitcoin Halving and Ethereum Upgrade Already Incorporated in Prices

JPMorgan Chase has conducted an in-depth analysis of the factors likely to influence cryptocurrency prices in the coming months, identifying three key catalysts. The investment bank's analysts believe that the Bitcoin halving event and the impending major upgrade of the Ethereum network have already been factored into the market prices.

As a prominent global investment bank, JPMorgan Chase has offered insights into the factors shaping the future of cryptocurrency prices. The firm has emphasized the resurgence of interest from retail investors as a primary driver behind the recent surge in popular cryptocurrencies like Bitcoin (BTC) and ETH (ETH).

Under the leadership of global market strategist Nikolaos Panigirtzoglou, the JPMorgan team has noted a significant increase in retail investor activity, particularly from smaller wallets, surpassing institutional flows. This trend is evident in 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 expected to make a decision on the approval of a spot ethereum ETF in May. Despite SEC Chairman Gary Ganser's consistent reluctance to classify ether as a security, which has raised doubts about the approval of spot ethereum ETFs, there is optimism within the industry regarding its approval in May, with Standard Charter Bank among the optimistic parties.

Moreover, the JPMorgan analysts highlighted recent reports from Block Inc., Paypal Inc., and Robinhood Markets Inc., indicating net positive bitcoin purchases by their customers in Q4 2023. This represents a significant reversal from the sales trend observed in Q3, suggesting a change 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.