JPMorgan Chase and Deutsche Bank have weighed in on potential price movements for bitcoin following the halving. “We continue to expect prices to stay high,” Deutsche Bank analysts said. JPMorgan analysts, however, stated that they “see downside for the bitcoin price post halving for several reasons.”
JPMorgan and Deutsche Bank on Bitcoin Post-Halving
JPMorgan Chase and Deutsche Bank have weighed in on the potential impact of the Bitcoin halving on BTC’s price and ecosystem. The Bitcoin network completed its fourth halving on April 19. Despite agreement on the halving’s impact being priced in, the two banks diverge on bitcoin’s post-halving price trajectory.
Deutsche Bank analysts Marion Laboure and Cassidy Ainsworth-Grace explained in a note Thursday that the Bitcoin halving is “already partially priced in by the market,” noting that the event “has been widely anticipated in advance due to the nature of the Bitcoin algorithm.” While stating that they “do not expect prices to increase significantly following the halving event,” the Deutsche Bank analysts detailed:
Looking ahead, we continue to expect prices to stay high due to expectations of future spot ether (ETH) ETF approvals; future central bank rate cuts; and regulatory changes.
A recent survey by Deutsche Bank revealed that more than half of respondents anticipate cryptocurrencies to evolve into an important asset class and a method of payment. Furthermore, 10% of those surveyed expect BTC’s price to surpass $75,000 by the end of the year.
JPMorgan analyst Nikolaos Panigirtzoglou has also doubled down on his belief that Bitcoin halving has “largely” been priced in. He said Thursday that he expects a near-term decline in the price of bitcoin following the halving, attributing it to overbought conditions and prices that remain higher than the cryptocurrency’s comparison to gold when adjusted for volatility. He also highlighted the subdued level of venture capital funding for crypto projects. The JPMorgan analyst shared:
We do not expect bitcoin price increases post halving as it has been already priced in. In fact we see downside for the bitcoin price post halving for several reasons.
Last week, JPMorgan cautioned about potential downward risks in cryptocurrency markets, highlighting that Bitcoin remains overbought despite recent price fluctuations. The analyst also cast doubt on the crypto’s ability to achieve parity with gold in investor portfolios. The global investment bank anticipates a potential drop in BTC’s price to $42,000 following the halving.