Cryptocurrency markets have experienced a significant rebound over the past month, with Bitcoin BTC/USD leading the way, according to JPMorgan Chase & Co. research.
The bank highlighted both Bitcoin and gold have seen gains as they are considered safeguards against a potential "catastrophic scenario," Coindesk reported.
According to the report, led by analyst Nikolaos Panigirtzoglou, recent issues in the banking sector have "highlighted the frailties of the traditional financial system, as banks' maturity mismatch makes them vulnerable to bank runs."
This situation has been perceived by cryptocurrency enthusiasts as evidence supporting the value of the crypto ecosystem.
Also Read: Regulation Rumble: Binance's CZ Drops Mic On Crypto's Future
Additionally, the launch of Bitcoin Ordinals two months ago has been seen as a positive for the cryptocurrency, with some arguing it could increase transaction fees and boost miner revenues.
JPMorgan Chase emphasized the most critical support for Bitcoin stems from the growing investor interest in the upcoming halving event scheduled for April 2024.
This event will halve mining rewards, effectively doubling Bitcoin's production cost to around $40,000.
This increase in production cost is said to create a "positive psychological effect," as historically, Bitcoin's production cost has served as an effective lower boundary for its price, the report concludes.
Read Next: Hong Kong's Crypto Revolution: Billionaire's Virtual Bank Takes Over
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