Bitcoin Price May Dip After Halving, Says JPMorgan

Bitcoin Price May Dip After Halving, Says JPMorgan

JPMorgan, a major Wall Street bank, predicts a potential drop in Bitcoin's price following the recent halving event (around today or tomorrow). This quadrennial event cuts the rewards miners receive for processing transactions, slowing the growth of new Bitcoins.

The bank's analysis of Bitcoin futures suggests the market might be overbought, meaning there's a high level of buying activity that could be followed by a correction. Additionally, Bitcoin's current price of around $61,200 sits above JPMorgan's estimates of its fair value. They use a volatility-adjusted comparison with gold (around $45,000) and their projection for Bitcoin's production cost after the halving (around $42,000). Historically, production costs have acted as a floor for Bitcoin prices.

While this is just one prediction, it highlights the ongoing volatility in the cryptocurrency market.

Tether Expands Beyond Stablecoins, Announces New Business Focus

Tether, the company behind the leading stablecoin USDT, is undergoing a major transformation. They've announced a restructuring into four new divisions, signaling a clear move to expand their influence beyond just stablecoins and establish themselves as a key player in the broader web3 space.

Here's a breakdown of Tether's new structure:

• Tether Data: This division will focus on strategic investments in emerging technologies, including artificial intelligence and peer-to-peer systems.

• Tether Finance: This division remains the core for Tether's traditional stablecoin products and financial services.

• Tether Power: This new venture delves into sustainable Bitcoin mining, aiming to ensure the long-term health of the cryptocurrency network.

• Tether Edu: Focused on education and knowledge sharing, this division will develop resources to expand access to digital skills globally.

Tether's CEO, Jean-Louis Masticardo, highlights their significant holdings in U.S. Treasury bills, demonstrating financial strength. Additionally, they've launched a new website, tether.io, dedicated to showcasing their expanding business ventures. This move signals Tether's ambition to become a comprehensive web3 powerhouse, not just a stablecoin provider.

Bitcoin Sell-Off May Ease as Traders Reach Breakeven

Bitcoin bulls may find some solace after a week of price drops. Analysis by CryptoQuant suggests traders are nearing a "breakeven point" on their holdings, potentially signaling a pause in selling pressure.

Here's the breakdown:

• Data shows short-term Bitcoin holders (those owning for less than 155 days) have seen their profits evaporate entirely. This means selling their Bitcoin now would lock in losses, potentially leading them to hold onto their coins.

• Historically, reaching this break-even point coincides with a decrease in selling pressure, as traders avoid realizing losses.

This aligns with Bitcoin's price action so far. Despite recent drops, the price has only briefly dipped below the key $60,000 mark.

It's important to note that price corrections are normal after reaching new all-time highs, especially considering the recent block subsidy halving which can fuel volatility. While the future remains uncertain, this data suggests some stability may be returning to the Bitcoin market.

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