- While Bitcoin (BTC) price fluctuates in the range of $50,000 – $52,000, investors are eagerly anticipating a rally ahead of the Bitcoin halving in April 2024.
- After a short hiatus in January, individual investors are re-entering the crypto space, driven by the recent surge in popular cryptocurrencies like Bitcoin and Ethereum, said JPMorgan Chase & Co. analysts.
- The ongoing BTC price rally appears to be weakening, signaling a potential decline for Bitcoin, which would mark the first negative week after more than a month.
JPMorgan analysts revealed their correction expectations by suggesting that the impact of the Bitcoin halving event may already be priced in.
JPMorgan Details Bitcoin Prediction
While Bitcoin (BTC) price fluctuates in the range of $50,000 – $52,000, investors are eagerly anticipating a rally ahead of the Bitcoin halving in April 2024. However, banking giant JPMorgan has stated that the impact of the halving may already be reflected in the prices.
After a short hiatus in January, individual investors are re-entering the crypto space, driven by the recent surge in popular cryptocurrencies like Bitcoin and Ethereum, said JPMorgan Chase & Co. analysts. Data shows that the flow of Bitcoin from small wallets typically associated with retail traders significantly exceeds the flow from institutional investors.
Nikolaos Panigirtzoglou and his team noted that this trend persisted even after accounting for entries into new spot Bitcoin exchange-traded funds (ETFs). As Bitcoin prepares for its sixth consecutive month of increase, investors may be anticipating several significant developments in the crypto space. JPMorgan strategists wrote:
“The retail resurgence in February likely reflects a tendency to wait for three key crypto catalysts in the coming months: the Bitcoin halving event, Ethereum network’s next major upgrade, and the possibility of approval for spot Ethereum ETFs by the Securities and Exchange Commission in May. We think the first two catalysts are largely priced in, but we give a 50% chance for the third catalyst.”
Is a Major BTC Price Correction Coming?
The ongoing BTC price rally appears to be weakening, signaling a potential decline for Bitcoin, which would mark the first negative week after more than a month. Last week, the Bitcoin price traded in the negative zone with a 1.20% decline, attempting to stay above $51,000. If this trend continues, it would indicate Bitcoin’s first negative week since the beginning of the rally in late January.
However, the halving event in April is likely to boost momentum for Bitcoin as it reduces supply. Yet, some market analysts believe that the upward potential may be limited until the halving event.
Currently, the demand from incoming Bitcoin ETFs surpasses BTC supply by 13 times. This gap will only widen with the halving. Some market analysts believe that BTC price could reach $273,000 after the halving event.
While there might be an upper limit, PlanB, the creator of the stock-to-flow model, which suggests a 20% downside from here, asserts that BTC price will not drop below $40,000.
