JPMorgan Names Key Reasons Why Bitcoin Price Won’t Rally Hard

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As a seasoned crypto investor with a few years under my belt, I’ve learned to take analysts’ predictions with a grain of salt. JPMorgan’s latest stance on Bitcoin’s limited upside due to waning demand for spot Bitcoin ETFs is just another opinion in the sea of voices that often contradict each other. While it’s true that Hong Kong’s crypto ETF has underperformed, we cannot ignore the fact that US-based Bitcoin ETFs have seen massive success post-launch.

Banking giant JPMorgan does not expect the price of Bitcoin to experience a substantial rally. 

Any potential upside will be “limited” due to waning demand for spot Bitcoin ETFs. 

As a financial analyst, I would rephrase that statement as follows: I have taken a cautious position towards cryptocurrencies based on the recent failure of the proposed ETF in Hong Kong, according to JPMorgan’s report.

Based on Bloomberg’s report, Hong Kong’s aspirations to become a major cryptocurrency hub have taken a hit due to the disappointing performance of crypto exchange-traded funds (ETFs) there.

As a crypto investor, I’ve noticed that the recently launched products have been experiencing significant outflows within just two weeks of their debut. In contrast, US-based Bitcoin spot ETFs, such as BlackRock’s IBIT, witnessed massive inflows post-launch and set numerous records.

The estimated mining cost 

Based on the latest halving event, it is approximated by the biggest American bank that the expense of extracting a single cryptocurrency coin amounts to approximately $45,000.

JPMorgan observes that the expected decrease in Bitcoin’s hashrate following a halving event was temporarily halted due to the brief surge in Bitcoin transaction fees caused by the Runes protocol.

The top cryptocurrency is currently trading at $66,412 on the Bitstamp exchange.  

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2024-05-17 11:12