JPMorgan analysts have identified several critical factors influencing the cryptocurrency market in the coming months. Their research highlights technical, geopolitical, and structural events that may drive price movements.
October is often a bullish month for cryptocurrencies, a trend known as 'Uptober.' Analysts noted that over 70% of all Octobers have produced positive returns for Bitcoin. They believe this trend could influence market behavior, potentially leading to a positive October for Bitcoin.
Despite recent interest rate cuts by the U.S. Federal Reserve, the broader cryptocurrency market has yet to experience the expected positive effects. The correlation between the total crypto market capitalization and the Federal Funds rate remains low, indicating that the market may be waiting for more stability.
The recent approval of options trading on spot Bitcoin ETFs could deepen market liquidity. Analysts expect this will attract new market participants, enhancing the overall market structure.
The upcoming Ethereum upgrade, 'Pectra,' aims to implement over 30 Ethereum Improvement Proposals (EIPs) to enhance network efficiency. While this upgrade is expected to positively impact Ethereum's functionality, analysts view it as more of a structural change than an immediate price catalyst.
Overall, JPMorgan analysts conclude that the cryptocurrency market is currently in a holding pattern, awaiting clearer macroeconomic or structural catalysts for sustained growth.
