JPMorgan: Bitcoin demand will grow significantly by April 2024

JPMorgan analysts believe that retail demand for bitcoin will grow significantly during the year remaining before the next halving of the flagship cryptocurrency’s network.

The halving is scheduled to take place in April 2024. This event, by reducing miners' income, will double the cost of mining bitcoin to about $ 40,000, which will create a positive psychological effect, the bank’s report says.

The halving is one of the most important events in the history and evolution of bitcoin. Judging by historical data, investing in BTC before a halving is always profitable. Each subsequent halving further strengthens bitcoin as the flagship cryptocurrency. The 2016 and 2020 halvings «were accompanied by a bullish trajectory for the BTC price,» which accelerated after they occurred.

The recent increase in retail demand can be partially explained by the emergence of NFTs and BRC-20 tokens in the BTC network. However, «retail investor demand for bitcoin will grow more rapidly as we approach halving,» JPMorgan analysts emphasized.

As for institutional demand for bitcoin, it is on the contrary falling. According to the researchers, large investors are scared off by fraud, increased volatility of the digital currency, and pressure from US regulators, which has led to increased uncertainty.

In February, a JPMorgan survey revealed low interest among institutional traders in cryptocurrencies. Only 8% of respondents reported that they were engaged in crypto trading, 6% of participants planned to do so within a year, and another 14% within five years. 72% of the surveyed traders said they had no intention of trading cryptocurrencies.

According to the theory of cryptocurrency analyst Rudy Fares, it is enough to own 0.01 BTC to become a millionaire in 10 years. Trader Rudy Fares is confident that 2033 will be the most profitable year for bitcoin. The cryptocurrency will rise in price due to halving, the expert explained.