### According to recent reports by JPMorgan, the future of Bitcoin (BTC) seems to be driven by contrasting forces. Retail investors are poised to play a significant role in the cryptocurrency's growth, while institutional interest appears to be waning.

The research highlights that retail demand for Bitcoin is expected to remain robust in the coming year, especially as the next halving event approaches. The rise in retail interest can be attributed to the introduction of Bitcoin Ordinals and Ethereum-based BRC-20 tokens, which have spurred increased participation from individual investors. Moreover, JPMorgan analysts predict that as the April 2024 halving event draws near, retail investors' demand for Bitcoin will strengthen further.



The halving event, characterized by a 50% reduction in mining rewards, is projected to have a positive psychological effect on the market. JPMorgan's analysts, led by Nikolaos Panigirtzoglou, believe that the event will double Bitcoin's production cost to around $40,000. This historical pattern has demonstrated that the production cost acts as a significant lower boundary for the cryptocurrency's price. Historical data shows that Bitcoin's price has increased rapidly following the 2016 and 2020 halving occurrences, both of which were supported by optimistic trends.



In contrast, institutional demand for Bitcoin has been experiencing a decline. Concerns over fraud, heightened volatility, and ongoing regulatory challenges have dampened institutional interest in the cryptocurrency market. The uncertain regulatory landscape in the United States has further contributed to this trend.



JPMorgan had previously noted that during times of crisis, both gold and Bitcoin rallied, with institutional investors favoring gold and retail investors turning to Bitcoin as a hedge against catastrophic scenarios. However, in the current market environment, institutional investors seem to be cautious, while retail investors continue to express confidence in Bitcoin's potential.

According to recent reports by JPMorgan, the future of Bitcoin (BTC) seems to be driven by contrasting forces. Retail investors are poised to play a significant role in the cryptocurrency's growth, while institutional interest appears to be waning.

Tue Jul 11 2023

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Tue Jul 11 2023 JPMorgan's Crystal Ball: Retail Investors Set To Fuel Bitcoin Boom Before Halving

JP Morgan: Grayscale's GBTC Profit-Taking Likely Over

JP Morgan: Grayscale's GBTC Profit-Taking Likely Over

Tue Jul 11 2023

JPMorgan's Crystal Ball: Retail Investors Set To Fuel Bitcoin Boom Before Halving