Despite recent regulatory headwinds, the cryptocurrency market rebounded strongly last month, with bitcoin outperforming the broader market, JPMorgan Chase & Co (JPM) said in a research note last week.
Bitcoin rallied alongside gold as both were seen as a hedge against a catastrophic scenario. The U.S. banking crisis and the strong shift of U.S. bank deposits into U.S. money market funds are seen by crypto proponents as proof of the crypto ecosystem.
Bitcoin has also benefited from the launch of bitcoin ordinals two months ago, which some believe will push up transaction fees and boost miners’ income.
JPMorgan said that the most important support for Bitcoin comes from investors’ attention to next year’s halving event, which is scheduled to take place in April 2024, when mining rewards will be halved.