JPMorgan predicts high demand for Bitcoin until April 2024
JPMorgan analysts predicted that retail traders' demand for Bitcoin will remain high until April 2024
The hulking of the first cryptocurrency to occur on the Web next spring creates a positive psychological effect on the market, the bank said
Analysts at JPMorgan believe that retail demand for Bitcoin will remain high for nearly a year left before another halving (halving of mining fees) on the leading cryptocurrency's network, CoinDesk reports.
Halving is set to occur around April 2024. This event, by cutting miners' income, would double the cost of mining bitcoin to about $40,000, which would create a positive psychological effect, according to the bank's report.
What is Bitcoin halving and how will it affect the price of the first cryptocurrency
This is because, the analysts explained, historically the cost of mining BTC has acted as an effective lower bound on its price.
The recent rise in retail demand can be attributed in part to the emergence of NFT and BRC-20 tokens on the bitcoin network, but more importantly, "retail investor demand for bitcoin is likely to grow as we approach a halving," JPMorgan analysts wrote.
Institutional demand for bitcoin, by contrast, is falling as big investors are scared off by fraud, increased volatility in the digital currency, and pressure from U.S. regulators that has led to increased uncertainty, the report said.
In February, a JPMorgan survey found little interest from institutional traders in cryptocurrency. 72% of surveyed traders said that they are not going to trade in cryptocurrencies.
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