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JPMorgan lists the main reasons why the price of Bitcoin will not rise sharply
Alex Dovbnja
JPMorgan believes that Bitcoin price upside is limited due to these key factors
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Banking giant JPMorgan does not expect the price of Bitcoin to rally substantially.
Any potential benefits will be “limited” due to declining demand for spot Bitcoin ETFs.
Additionally, JPMorgan cited the failure of the Hong Kong cryptocurrency ETF to support its somewhat cautious stance.
According to Bloomberg, the extreme disappointing the performance of cryptocurrency ETFs has dented the Hong Kong crypto hub’s ambitions.
The products, which debuted just two weeks ago, are already suffering from outflows. For comparison, US-based Bitcoin spot ETFs saw huge demand following their launch, with BlacRock’s IBIT breaking numerous records.
The estimated mining cost
The largest US bank also estimated that the cost of mining one coin is currently $45,000 after the latest halving event.
JPMorgan noted that the post-halving drop in hashrate was delayed by the rather short-lived success of the Runes protocol which pushed Bitcoin fees significantly higher.
The leading cryptocurrency is currently trading at $66,412 on the Bitstamp exchange.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.