Jamie Dimon Quits Bitcoin: Bitcoin On Track To Hit $100K
Jamie Dimon doesn’t like Bitcoin (Cryptocurrencies: BTC); that’s a well-known fact. He has many criticisms, most of which are true, but it doesn’t matter because the world is embracing blockchain technology. Call it a pet rock if you want (he does), and quit talking about it (he did); this dud is up nearly 300% in the last eighteen months and is on track to hit a new high soon. Among the drivers is the growing availability to retail clients, availability aided by the proliferation of BTC-themed ETFs, and the halvening.
The halvening is a critical component of the Bitcoin lifespan. It occurs every four years and is intended to counteract inflation. The halvening reduces the mining reward earned for each completed block by half, keeping the pace of new BTC creation below demand and supportive of the price.
The halvening is a vital date to track because the market may see volatility ahead, during, and after the event. It’ll tentatively happen around 9:20 GMT on April 21st. The takeaway for investors is that BTC value increased by at least a high-triple-digit amount following each of the last three halvenings. It is up 500% since the previous halvening in September 2020.
Jamie Dimon Likes Blockchain, Hates Bitcoin
Jamie Dimon hates Bitcoin because he doesn’t see its purpose. In his view, it is a tool for fraud, money laundering, and criminal activity, but he doesn’t feel the same about all blockchain technology. He and JPMorgan Chase (NYSE: JPM) view blockchain technology favorably and utilize it for the business. JPMorgan’s Onyx platform supports the JPM coin and a distributed ledger system. The difference is that this token is used solely 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 of the altcoins because they have utility. Ethereum (Cryptocurrencies: ETH), with its smart contract capability, is among them and also swept up in the market frenzy. Ethereum is on the move because of its inclusion in a growing number of ETFs and changes in how it operates. Ethereum switched to a proof-of-stake system in 2022 for multiple reasons, including controlling the creation of new tokens, reducing its carbon footprint, and enhancing security. The effect has been a 99.5% reduction in electrical use and a drastic slowdown in token issuance.
Bitcoin Remains the Dominant Player In Cryptocurrency
Bitcoin remains the dominant player in cryptocurrency despite Mr. Dimon’s concerns and the rise of the altcoins. That fact is seen in the market cap, down over the last year but still near 50%, where it has trended for years. Ethereum maintains the #2 spot with 17% of the share, which is also steady, with USDT (Cryptocurrencies: USDT) rising. USDT is the US Dollar Tether coin, a tokenized version of the dollar not approved by the government. Cryptocurrency markets favor it for its stability.
The more telling indicator of Bitcoin’s dominance is the hash rate. The hash rate is a measure of the computing power focused on Bitcoin mining, and it is on the rise. The BTC hash rate hit a new record in early February 2024 and will likely hit a new record soon. Ethereum’s hash rate fell to nearly zero following its shift to proof of stake, but there is equally telling information in the staking data. The number of staked Ether has been trending steadily higher for three years. It is quickly approaching 30 million or roughly 25% of the total Ethereum in circulation, providing ample liquidity for its network.
The Technical Outlook: Bitcoin Is On Track To Hit $100,000
The technical outlook for Bitcoin is robust. The token is trending strongly higher following a test of critical support and is on the verge of breaking out to new highs. A break to new highs would open the door to another sustained rally with a chance of a 50% or larger advance. The magnitude of the prior movement is worth $30,000, giving a target near $98,000. The prior move is also worth a 78% upside, which gives a target near $120,000 that may be reached this year.
Source MarketBeat
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