A recent report by JPMorgan highlights several important points about the state of the cryptocurrency market and the factors that may affect it in the near future. Here are the main conclusions from the report:
- Uptober
A term used in the cryptocurrency community to refer to the upward trend in bitcoin and other cryptocurrencies in October.
There is a historical tendency for October to be a high month, the so-called Uptober. Analysts emphasized that more than 70% of all Octobers brought positive returns to bitcoin.
«Although preliminary results are not a predictor of future results, we believe that the popularization of Uptober could influence behavior and lead to a positive month for bitcoin in October,» the analysts wrote.
- Lower interest rates
Despite the fact that The US Federal Reserve cut interest ratesThe cryptocurrency market has not benefited significantly from these changes in monetary policy. This may be due to broader macroeconomic factors affecting market dynamics.
«We have yet to see the expected «explosion» in cryptocurrency prices following the Federal Reserve’s interest rate cut on September 18,» analysts said, suggesting that the market may wait for more stability before taking decisive action.
Analysts also emphasized the lack of historical data, which makes it difficult to predict how cryptocurrencies will react to interest rate cycles.
- Approval of a spot Bitcoin ETF
Approval of trading options on spot ETFs on bitcoin
should improve liquidity in the market. This, in turn, could attract more institutional investors and create more opportunities for retail participants.
«With options, investors now have a more dynamic way to interact with ETFs and increase the liquidity of the underlying asset,» JPMorgan believes.
In mid-September, the U.S. Securities and Exchange Commission (SEC) approved BlackRock iShares Bitcoin Trust’s proposal for a spot ETF to be listed on Nasdaq and to trade options, although final approval is subject to the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).
- Ethereum Pectra update
The largest hard fork in the history of Ethereum (ETH) called Pectra, JPMorgan analysts advise to consider it as a long-term improvement in the fundamental structure of Ethereum, rather than an event that will lead to an immediate price increase.
- Sensitivity to macroeconomic factors
The cryptocurrency market is becoming increasingly sensitive to macroeconomic trends, indicating that broader economic conditions, not just individual events in the cryptocurrency world, will influence the next significant market shift. For now, the market is waiting for a catalyst that will push investors to become more involved.
Source: Bitcoin Sistemi EN
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