BTC's Short-Term Upside Limited Amid Lack of Catalysts and Weakening Retail Interest: JPMorgan
CryptoNewsTerminal Staff16 May, 2024
BTC's Short-Term Upside Limited Amid Lack of Catalysts and Weakening Retail Interest: JPMorgan
Bitcoin's upside potential appears limited in the near term, according to JPMorgan, citing the absence of positive catalysts and waning retail investor buying pressure. In a recent report, the investment bank noted that Bitcoin's mining cost has declined from $50,000 to roughly $45,000 since the halving, as less efficient miners have exited the market. While it was anticipated that the halving would lead to a drop in the Bitcoin network's overall hashrate as unprofitable miners departed, the decline has been slower than expected. This may be attributed to the temporary spike in transaction fee rewards for Bitcoin miners following the launch of the Runk protocol. However, the rise in miner rewards due to Runk has been short-lived, and transaction fees have actually declined in recent weeks. The report highlights the need for positive catalysts to drive Bitcoin's price higher, while acknowledging that the fading retail buying pressure may limit its upside in the short term.
