Bitcoin Continues to Rise – Jamie Dimon Says Who Cares, Should You

Bitcoin price

Key points

  • Jamie Dimon has stopped talking about Bitcoin but is still in favor of blockchain technology.
  • The halving supports price action in BTC and could take it to $100,000 this year.
  • Ethereum is more practical and growing, poised to gain 35% to 50% soon.
  • 5 stocks we prefer to JPMorgan Chase & Co.

Jamie Dimon doesn’t like it Bitcoin (Cryptocurrency: BTC); this is a well-known fact. It has many criticisms, most of which are true, but it doesn’t matter because the world is embracing blockchain technology. Call it pet rock if you want (it does), and stop talking about it (it does); this decline has grown nearly 300% over the past eighteen months and is on track to reach a new high soon. Among the driving factors is increasing availability to retail clients, availability aided by the proliferation of BTC-themed ETFs and halvings.

Halvening is a critical component of Bitcoin’s lifespan. It occurs every four years and is intended to combat inflation. The halving reduces the mining reward earned for each completed block by half, keeping the pace of new BTC creation below demand and supporting the price.

The halvening is a key date to track because the market may see volatility before, during and after the event. It will happen approximately around 9:20 GMT on April 21st. The bottom line for investors is that the value of BTC has increased by at least a triple-digit amount after each of the last three halvens. This is up 500% compared to the previous halving in September 2020.

Jamie Dimon Likes Blockchain, Hates Bitcoin

Jamie Dimon hates Bitcoin because he doesn’t see its purpose. In his opinion, it is a tool for fraud, money laundering and criminal activities, but he does not feel the same way about all blockchain technology. He is JP Morgan Chase New York Stock Exchange: JPM view blockchain technology favorably and use it for business. JPMorgan’s Onyx platform supports JPM coin and a distributed ledger system. The difference is that this token is used exclusively for internal purposes, allowing JPMorgan clients to facilitate quick transactions within JPMorgan accounts. It’s a tool for them, not a band-aid for the financial system.

Mr. Dimon extends his favorable view to other blockchain technologies and some altcoins because they have utility. Ethereum (Cryptocurrency: ETH), with its ability to draw up smart contracts, is among them and is also overwhelmed by the market frenzy. Ethereum is on the move due to its inclusion in a growing number of ETFs and changes in the way it operates. Ethereum transitioned to a Proof-of-Stake system in 2022 for multiple reasons, including controlling the creation of new tokens, reducing its carbon footprint, and improving security. The effect was a 99.5% reduction in electricity consumption and a drastic slowdown in token issuance.

Bitcoin remains the dominant player in cryptocurrency

Bitcoin remains the dominant player in cryptocurrency despite Dimon’s concerns and the rise of altcoins. This fact is evident in the market capitalization, declining over the last year but still close to 50%, where it has been trending for years. Ethereum maintains second place with 17% share, also stable USDT (Cryptocurrencies: USDT) increasing. USDT is the US Dollar Tether currency, a tokenized version of the dollar not approved by the government. Cryptocurrency markets favor it for its stability.

The most significant indicator of Bitcoin’s dominance is the hash rate. The hash rate is a measure of computing power focused on Bitcoin mining and is increasing. The BTC hash rate reached a new record in early February 2024 and will likely reach it soon. Ethereum’s hash rate dropped to near zero following the move to proof of stake, but there is equally significant information in the staking data. The number of Ether staked has seen a steadily increasing trend for three years. It is quickly approaching 30 million, or about 25% of the total Ethereum in circulation, providing ample liquidity to its network.

Technical Outlook: Bitcoin is on track to reach $100,000

The technical outlook for Bitcoin is solid. The token is trending strongly up after a critical support test and is on the verge of hitting new highs. A break to new highs would open the door to another sustained rally with a chance of a 50% or higher upside. The previous move size is worth $30,000, with a target near $98,000. The previous move is also worth a 78% upside, which provides a target near $120,000 that could be reached this year.

BTC price chart

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