Anticipate Halving Bitcoin 2024: JPMorgan Seeing Increased Retail Requests

Bitcoin Halfing 2024. (Photo; Doc. Bybit)

JAKARTA - Anticipating the next Bitcoin (BTC) halving, which is scheduled to take place in the second quarter of 2024, has led to much speculation about its impact on the performance of major crypto assets and the market as a whole.

A recent report from Coinbase reveals that the outcome of the halving cannot be guaranteed, although it is usually considered a positive event as it affects the scarcity of Bitcoin and the dynamics of supply and demand.

According to the report analyst, David Duong, to understand market reactions to halving, it is necessary to carry out careful analysis of factors such as liquidity, interest rates, and US dollar movements.

Although halving Bitcoin is generally considered profitable, limited evidence of the previous three-halving suggests that factors such as global liquidity also play an important role. Crypto exchange believes that previous events did not provide enough clues to accurately predict the results of the upcoming halving in April 2024.

Coinbase's report highlights the challenges of determining market behavior patterns during halving. The presence of various factors contributing to price movements makes it difficult to isolate the exact impact of diving itself. Therefore, it is still uncertain how the next half will affect the behavior of the Bitcoin price, especially with global liquidity which seems to have peaked in the near future.

Despite uncertainties regarding market reactions, JPMorgan Chase, one of the main players in the financial industry, estimates that retail demand for Bitcoin will continue to rise ahead of haloing. This belief reflects high anticipation and significant interest in the crypto community regarding the event.

JPMorgan's report in May attributed an increase in retail demand for Bitcoin to the presence of Bitcoin Ordinarys and BRC-20 tokens. The report emphasizes that ahead of haloing, demand from retail investors for crypto assets is expected to increase significantly.

JPMorgan is one of many financial service companies to enter the crypto world. In 2021, the bank launched internal Bitcoin funds for institutional clients. Other fintech companies such as BlackRock and Grayscale Investments are also actively participating in the crypto market. Most recently, BlackRock submitted a request to the US Securities and Exchange Commission (SEC) to launch Bitcoin exchange-traded funds (ETF).

Looking back, the Haling Bitcoin first occurred in 2012 after the official launch in 2009. At that time, the mining block prize was reduced from 50 to 25 BTC. This significant historical event sparked a huge rise in Bitcoin prices, pushing these crypto assets to a tremendous peak. The market witnessed an increase in interest from investors who raised the value of Bitcoin to the highest level.