Bitcoin While the (BTC) price was in the range of $ 50,000 – $ 52,000, investors who expected a rally before the halving in April 2024 began to worry after JPMorgan claimed that the impact of the halving was already priced in.
JPMorgan analysts made an interesting comment. After a pause in January, retail investors are back as assets like Bitcoin surge.
Bitcoin flows from small wallets associated with retail traders have exceeded flows from institutional investors. Analysts noted that this was true even after accounting for inflows into new spot Bitcoin ETFs.
As Bitcoin prepares to close its sixth month with gains, investors expect important developments in the crypto field. JPMorgan “The resurgence of retail drive in February reflects the expectation of three major crypto catalysts in the coming months: the halving event on the BTC network, the next major upgrade of the Ethereum network, and the possibility of spot Ethereum ETFs being approved by the SEC in May. “We believe the first two catalysts are largely priced in, while we see only a 50 percent chance for the third catalyst,” they commented.
Is a Major Bitcoin Price Correction Possible?
As the ongoing BTC price rally slows down, it looks like the first weekly loss in more than a month will follow. This triggers a potential bearish signal. Over the past week, the price lost value as it struggled to stay above $51,000. If this trend continues, it will be Bitcoin’s first negative week since the start of its last rally in late January.
However, with the April halving event approaching, which reduces supply, BTC will soon look to regain its momentum. However, some market analysts stated that the upward movement may remain limited until the halving event.
Currently, demand for Bitcoin ETFs has exceeded BTC supply by 13 times. With the halving event, this difference will increase even more. Some market analysts expect the BTC price to reach $273,000 after the halving event.
Even if the upside looks sideways, the downside could be 20% from here. The author of the stock-to-flow model PlanB notes that he does not see the BTC price falling below $40,000.
