Deutsche Bank Predicts Bitcoin Price to ‘Maintain High Levels’ After Halving — JPMorgan Holds Contrary View
Deutsche Bank and JPMorgan Chase have shared their perspectives on the potential trajectory of bitcoin’s price following the recent halving event. While Deutsche Bank analysts expressed confidence in the cryptocurrency’s ability to sustain its elevated value, JPMorgan analysts offered a contrasting opinion, foreseeing potential downside.
In their assessment of Bitcoin’s post-halving prospects, analysts at Deutsche Bank, including Marion Laboure and Cassidy Ainsworth-Grace, acknowledged that the halving’s impact had already been partly factored into the market:
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.
They noted that the event had been widely anticipated due to the transparent nature of the Bitcoin algorithm. Despite this, they emphasized that they do not foresee a significant surge in prices immediately following the halving.
Additionally, Deutsche Bank’s recent survey revealed that a majority of respondents anticipate cryptocurrencies evolving into a crucial asset class and payment method, with a notable percentage expecting Bitcoin’s price to exceed $75,000 by year-end.
On the other hand, JPMorgan analyst Nikolaos Panigirtzoglou reiterated his belief that the Bitcoin Halving has been largely priced in. He suggested a potential short-term decline in Bitcoin’s price post-halving, citing factors such as overbought conditions, elevated prices relative to gold after adjusting for volatility, and a subdued level of venture capital funding in crypto projects:
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 expressed caution regarding potential downward risks in cryptocurrency markets, highlighting Bitcoin’s overbought status and questioning its ability to achieve parity with gold in investment portfolios. The investment bank anticipates a possible drop in Bitcoin’s price to $42,000 following the halving.
In light of these contrasting viewpoints, do you align more with Deutsche Bank’s optimism about Bitcoin’s price sustainability or with JPMorgan’s cautionary stance regarding a potential sharp decline?
