The post JPMorgan Announced: These Will Determine the Price of Cryptocurrencies in the Coming Months appeared on BitcoinEthereumNews.com.

JPMorgan analysts have highlighted several critical factors that could shape the cryptocurrency market in the coming months, noting technical, geopolitical, and structural events that are likely to drive price movements. JPMorgan Analysts Discuss Factors That Will Determine the Price of Bitcoin and Cryptocurrencies In a research report published today, the impact of the seasonal “Uptober” trend, Fed rate cuts, Bitcoin ETF options approval, and Ethereum’s upcoming Pectra upgrade were discussed. One of the main takeaways from the report is the historical trend of strong October performance, commonly known as “Uptober.” Analysts noted that over 70% of all Octobers resulted in positive returns for bitcoin. “While prior performance is not a predictor of future performance, we think this popularization of ‘Uptober’ could influence behavior and result in a positive month for bitcoin this October,” the analysts wrote. Despite the Fed’s recent rate cuts, analysts noted that the broader cryptocurrency market has yet to experience the expected positive impact. Typically, a falling interest rate environment supports risk assets, but the correlation between total crypto market cap and the federal interest rate remains weak at 0.46, the report said. “We have not yet seen the expected ‘explosion’ in cryptocurrency prices since the Fed’s interest rate cut on September 18,” analysts said, suggesting that the market may be waiting for more stability before making decisive moves. The analysts also acknowledged the lack of historical data, which makes it difficult to predict how cryptocurrencies respond to interest rate cycles. “Crypto assets really only emerged in the early to mid-2010s, and interest rates have been near zero for most of their existence. It’s possible that stable interest rates, rather than low interest rates, would benefit these markets the most,” they wrote. Another potential catalyst identified by analysts was the recent approval of options trading on spot…

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Filed under: News - @ October 7, 2024 8:28 pm