- JPMorgan Chase analysts believe that the Bitcoin (BTC) halving event and the Ethereum (ETH) upgrade are already priced in.
- They aren’t sure about the approval of spot Ethereum exchange-traded funds (ETFs).
Analysts at JPMorgan Chase recently gave their forecasts on the pivotal events happening in the two largest cryptocurrencies in the world by market cap. The key narratives driving optimism in Bitcoin and Ethereum right now are the Ethereum Dencun (Deneb and Cancun) upgrade in March, the Bitcoin halving in April, and the anticipated nod on spot Ethereum ETFs by the US Securities and Exchange Commission (SEC).
The Bitcoin Halving, Ethereum Dencun Upgrade, and Spot Ethereum ETFs
BTC had two game-changing events this year. It kicked off with the mass approval of spot Bitcoin ETFs on January 11. The new financial instruments paved the way for the wider institutional exposure and adoption of BTC while the billions of cashflows have resulted in a bump in the demand for its underlying asset.
However, the biggest thing occurring in its ecosystem is the approaching halving estimated between April 18 and 20. As its name says, the affair will reduce Bitcoin mining rewards from the present 6.25 BTC to 3.125 BTC. This will heighten the competition among miners while triggering a tighter supply for the crypto asset.
Before the halving though will be Ethereum’s Dencun upgrade around March 13. In a nutshell, this will enhance ETH’s scalability, security, and efficiency via proto-danksharding.
Meanwhile, more demand for ETH is foreseen with its impending rise in institutional adoption through spot ETFs. Similar to spot Bitcoin ETFs, these investment vehicles track the market price of their underlying asset without actually buying ETH. Loyal fans of the cryptocurrency expect them to generate massive cash flows similar to their Bitcoin-based counterparts while boosting demand for Ether.
JPMorgan’s Thoughts
The analysts at JPMorgan have low expectations of the incoming events. Furthermore, they are not so sure about the possible outcome of the spot Ethereum ETF filings.
“We believe that the first two catalysts (Dencun and halving) are largely priced in, while for the third catalyst (spot Ethereum ETFs) we only see a 50% chance,” the financial institution’s strategists reported.
The latest assessment of the firm’s experts echoes the same warnings we got as the countdown to the arrival of spot Bitcoin ETFs came near. Then, by the time the SEC gave its go signal, all bullish momentum was lost when a “sell the news” incident took over the market. With that, investors should tread with caution if they decide to bet on these important occasions for BTC and ETH.