“Individual Investor Demand May Increase Rapidly Before Halving”

Global investment bank JPMorgan included Bitcoin in its latest research report. JPMorgan pointed out that the demand for individual investors before the halving in the Bitcoin network, which is expected to take place in April next year, may increase rapidly.

JPMorgan analysts predict that after the halving event, where mining rewards will be halved, thus automatically shortening the BTC supply, the cost of BTC production will also double to around $40,000. In this estimate, based on historical data, the BTC production cost is considered a bottom zone for the cryptocurrency price. Thus, it is emphasized that the halving mechanism in the Bitcoin network acts as a trigger to push the cryptocurrency price up alongside the curtailed supply.

The JPMorgan report also mentions the rise in the post-halving periods in 2016 and 2020. Accordingly, it is emphasized that historical data strengthens the narrative that the reward halving in 2024 will be an important trigger for the rise in Bitcoin.

While it was emphasized in the report that the upward wave could be driven by individual investors, a pessimistic picture was drawn for institutional investors. JPMorgan analysts think that the institutional investor is affected by the negativity in the crypto industry in 2022. According to this view, institutions are adversely affected by the continuation of fraudulent activities in the sector, the high volatility and the uncertain regulatory environment that puts pressure on the market, especially in the USA.

During the banking crisis that suddenly emerged in the USA in the first quarter of 2023, investors turned to commodities such as gold and silver along with Bitcoin and used these assets as a safe haven against banking risk. JPMorgan emphasized that while investors were trying to protect themselves, the demand for Bitcoin was directed by individuals, and pointed out that institutions preferred more gold investment.

The reward halving event on the Bitcoin network is less than a year away, but it cannot be said that investors have priced this event yet. This process can also be checked by low levels of research on the term Bitcoin in Google searches. On the other hand, halving in Litecoin, one of the oldest altcoins of the market that has been forked from the Bitcoin network, will take place in August. The price movements of LTC in the post-halving period can be followed as a case study for BTC. As a result, when the fact that the supply of crypto money will decrease with the possible increase in individual demand for Bitcoin, as in the past, the possibility of a positive effect on the price of crypto money is considered high.