Two major American banks advise crypto investors to exercise caution regarding the approaching Bitcoin halving, a event that some experts predict may differ significantly from past patterns.
According to JPMorgan’s forecast released on a Wednesday, the value of Bitcoin is expected to remain stagnant or even decrease after the upcoming event, as it has been trending downward since early this month.
Could The Halving Be Bearish For Bitcoin?
The bank’s perspective stays unchanged from its earlier pessimistic predictions made throughout the year, disregarding the increasing positivity surrounding Bitcoin ETFs and the halving event.
Analysts headed by Nikolaos Panigirtzoglou believe that there won’t be any significant Bitcoin price surges following the halving event. On the contrary, they predict a possible decline in Bitcoin’s value after the halving occurs due to various reasons.
An analyst looked at gold’s price as a benchmark since bitcoin and gold have similar investment goals – serving as safe-haven assets during economic uncertainty and protecting against inflation. However, considering their volatility, the bank believed that bitcoin’s price should be around $45,000 instead of its current $63,700, indicating an overbought condition in the market.
A persistent bias towards Bitcoin futures, as indicated by high open interest, and a shortage of venture investment in the cryptocurrency sector this year, support their argument.
“According to Alex Kuptsikevich, FxPro’s senior market analyst, via email to Forbes, the bitcoin chart looks concerning as the price didn’t bounce back after the recent decrease on Friday and Saturday. Instead, the market appears accustomed to current levels, preparing for the upcoming halving event.”
Goldman’s Bitcoin Outlook
Last week, Goldman Sachs informed its clients in a letter that each of Bitcoin’s previous three price drops called “halvings” have been followed by significant price surges. However, the length of time it took for Bitcoin to hit a new all-time high after these surges has varied significantly.
The current Bitcoin cycle stands out more distinctly: It surpassed its prior cycle’s peak price of over $69,000 in March before the halving event had taken place.
Analysts advise exercising caution when applying past trends and the effects of halving directly to current situations, considering the distinct macroeconomic circumstances at hand.
Later in this week, around April 20 at 01:44 UTC, the Bitcoin halving will occur. This event is anticipated, but whether it triggers a “buy the rumor, sell the news” market reaction right away or not, Goldman Sachs believes the price fluctuations in the immediate future are insignificant.
The bank stated that the Bitcoin price is primarily influenced by the ongoing supply-demand balance and growing interest in Bitcoin ETFs. This dynamic, coupled with the inherent volatility of cryptocurrency markets, significantly shapes the Bitcoin’s current market value.
Read More
- CKB PREDICTION. CKB cryptocurrency
- EUR INR PREDICTION
- IMX PREDICTION. IMX cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- PBX PREDICTION. PBX cryptocurrency
- TANK PREDICTION. TANK cryptocurrency
- USD DKK PREDICTION
- ICP PREDICTION. ICP cryptocurrency
- W PREDICTION. W cryptocurrency
- GEAR PREDICTION. GEAR cryptocurrency
2024-04-19 10:26