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JPMorgan and Deutsche Bank Do Not Expect a Bitcoin Rally After the Halving

19 Apr 2024

Banks JPMorgan and Deutsche Bank are not very optimistic about the future of Bitcoin prices following the upcoming event known as "the halving," when the reward for mining new bitcoins will be halved. This update is expected on April 19-20. According to the German bank, the market has largely priced in this event in the current prices, and a significant price jump is unlikely.

Since the beginning of the year, the price of Bitcoin has increased by 44%, which is significantly more than the rise of the CoinDesk 20 index, which tracks the overall dynamics of the crypto market. This increase is mainly due to the launch of exchange-traded funds (ETFs) for Bitcoin in the USA in January. As of 6:00 AM Ukrainian time, the price of Bitcoin rose by 9.28% to $65,000.

Analysts Marion Labor and Cassidy Ainsworth-Grace believe that prices will remain high in the near future due to expected approvals of new financial products based on Ethereum, possible reductions in central banks' interest rates, and upcoming changes in regulation.

Deutsche Bank also forecasts that the locations of cryptocurrency mining may change, as smaller rewards will force companies to look for cheaper energy sources.

PocketBank conducted an analysis of BTC and believes that in the short term, the price will drop to $63,000-$64,000, which will subsequently trigger a rise to $70,000 per 1 BTC.