Bitcoin rallied in tandem with gold as they are both viewed as hedges to a catastrophic scenario, the report said.
Despite recent regulatory headwinds, the cryptocurrency market has rallied strongly over the last month, with bitcoin (BTC) outperforming, JPMorgan (JPM) said in a research report last week
.The bank notes that bitcoin, the largest cryptocurrency by market cap, gained at the same time as gold as both are viewed as hedges to a “catastrophic scenario.”
Stay in the know on crypto by frequently visiting Crypto News Today
Recent problems in the banking sector also “exposed the weaknesses of the traditional financial system given bank’s maturity mismatch is susceptible to bank runs,” analysts led by Nikolaos Panigirtzoglou wrote.
“The U.S. banking crisis and the intense shift in U.S. bank deposits to U.S. money market funds is viewed by crypto supporters as a vindication of the crypto ecosystem,” the report said.
Bitcoin has also benefited from the launch two months ago of bitcoin ordinals, which some argue will drive up transaction fees and increase miners’s revenues, the note said.
JPMorgan says the most important support for bitcoin has come from rising investor focus about next year’s halving event, scheduled for April 2024, when mining rewards are cut in half.
This would mechanically double bitcoin’s production cost to around $40,000, creating a positive psychological effect,” because historically, BTC’s production cost has acted as an effective lower boundary to its price, the report added.
Read More at COINDESK
Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.
Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt
