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JPMorgan Expands Blockchain Payments Network with GBP Account Support

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  • JPMorgan’s Kinexys now supports GBP accounts, enhancing cross-border payments.
  • The new GBP integration boosts JPMorgan’s blockchain payments for corporate clients.
  • Kinexys processes over $2B daily with clients like Trafigura and SwapAgent onboard.

JPMorgan Chase & Co. has expanded its blockchain-based payments system, Kinexys, to support British pound-denominated accounts. This move is designed to fill a gap in the stablecoin market, with the majority of transactions tied to the U.S. dollar.

Addition of the pound to JPMorgan creates more options for corporate clients seeking quick, low-cost, and flexible cross-border payment solutions. The new service enables clients to make transactions 24/7 in pounds, euros, and dollars, which enhances operational efficiency and increases currency liquidity.

Kinexys Grows with the Addition of British Pound Support

Launched in 2019 as JPM Coin, Kinexys is a blockchain network that facilitates real-time settlement and foreign exchange transactions for corporate clients. The platform, which was initially dollar-focused, expanded to support euro transactions last year. 

Adding the pound gives JPMorgan a broader range of offerings to match the increasing demand from companies seeking to access quick and inexpensive payments in currencies other than U.S. dollars. Despite increasing interest in pound-denominated transfers, approximately 80% of the platform’s volume remains dollar-based.

JPMorgan’s expansion follows a trend within the stablecoin market, as dollar-pegged tokens have left companies seeking alternatives in other major currencies. To address this, the Kinexys network can provide cross-border payments and foreign exchange services at any time of day. JPMorgan’s latest move highlights its effort to expand Kinexys as a key tool for its corporate clients, including the London Stock Exchange Group’s SwapAgent and global commodities trader Trafigura, who are already on board, according to Bloomberg reports.

Corporate Clients Benefit from Real-Time Blockchain Payments

This is a major development for Kinexys, as it allows companies to carry out real-time payments with the addition of British pound support. London Stock Exchange Group’s post-trade services firm, SwapAgent, and commodities trader Trafigura are the first companies to use the new pound accounts. 

Notably, SwapAgent will incorporate the GBP blockchain accounts into a pilot for digital settlement services to enhance its ability to manage settlements beyond traditional banking hours. Meanwhile, Trafigura plans to use the service for real-time payments across its financial hubs in London, New York, and Singapore.

JPMorgan’s Kinexys platform is enabled by the integration of blockchain technology that allows clients to transact efficiently and programmatically. The platform’s programmable payment features enable companies to automate treasury operations to improve cash flow management and operational control. JPMorgan’s move is a key milestone for its push into becoming a blockchain-based corporate client as a primary tool for streamlining financial transactions and reducing reliance on traditional banking hours.

The inclusion of the British pound on the Kinexys network marks JPMorgan’s ongoing effort to grow blockchain services to meet the changing needs of global businesses. Due to its rapid growth and average daily transaction volume rising to over $2 billion, Kinexys is becoming an increasingly important player in the blockchain-based payments industry. JPMorgan supports multiple currencies in Kinexys and hopes the solution will be a competitive alternative to existing payment systems, as it is available 24/7.

Yield-Bearing Stablecoins Poised for Major Surge, JPMorgan Predicts

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  • JPMorgan predicts yield-bearing stablecoins could reach 50% of market share.
  • Top stablecoins like USDe and USDY saw a combined market cap rise.
  • SEC approval of YLDS boosts momentum for yield-bearing stablecoins.

Yield-bearing stablecoins as well as tokenized Treasuries have gained increased popularity and could see substantial growth in future. JPMorgan analysts predict that the total stablecoin market share of yield-bearing assets may expand from 6% to 50%. This growth is imminent unless new regulatory restrictions slow down their expansion.

Yield-Bearing Stablecoins to Dominate Market Share

Yield-bearing stablecoins make up a small percentage of the entire stablecoin market. However, the market capitalization of these coins has increased rapidly from $4 billion to more than $13 billion in recent months. The leading yield-bearing stablecoins such as USDe, USDS, BUIDL, USD0, and USDY have experienced rapid growth due to increased investor demand.

JPMorgan analysts have outlined various factors that contribute to the growth of yield-bearing stablecoins. These assets enable investors to generate interest without high-risk and trading and lending activities. Major crypto platforms like Deribit and FalconX accept yield-bearing stablecoins such as tokenized Treasuries as collateral.

Additionally, tokenized Treasuries have become a central element in decentralized finance (DeFi). DeFi projects such as Frax Finance use these assets to boost yield generation. Traditional DeFi yields have plummeted since 2022 which further increases the interest in yield-bearing stablecoins.

The U.S. Securities and Exchange Commission approved Figure Markets’ yield-bearing stablecoin YLDS which demonstrates increased support for the segment. The registration of YLDS as a security enhances the credibility of yield-bearing stablecoins. JPMorgan analysts predict such regulatory approval will spur further market growth in this market.

Yield-Bearing Stablecoin Faces Hurdles

However, yield-bearing stablecoins face various obstacles despite the positive market trends. These assets attract strict regulatory scrutiny because of their classification as securities. These regulatory obstacles have limited the participation of retail investors in the yield-bearing stablecoins markets.

Moreover, traditional non-yield-bearing stablecoins such as USDT and USDC continue to dominate the market. USDT and USDC stablecoins have a combined market value of about $220 billion which allows fast, low-cost and efficient transactions. Additionally, USDT and USDC have high liquidity compared to yield-bearing stablecoins.

JPMorgan analysts predict that the current liquidity limitation of yield-bearing stablecoins will eventually fade away. The increased acceptance of yield-bearing stablecoins in crypto derivative markets, DAO treasuries and liquidity pools could boost their adoption. The analysts predict that more institutional investors will embrace these assets which will boost their liquidity.

Yield-bearing stablecoins could capture most idle cash reserves held in traditional stablecoins in the future. Experts estimate that idle cash constitutes less than the total stablecoin market value. Although the yield-bearing stablecoin market faces competition it reveals huge potential for growth.

JPMorgan Expert: DOGE Losing Market Share As Smart Money Quietly Accumulates This Undervalued $0.18 Crypto

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DOGE price has slipped 33% this month, testing the $0.20 support level as traders pivot toward hybrid platforms. JPMorgan analysts highlight this shift, noting increased accumulation of DTX Exchange tokens during its $0.18 presale phase, with a listing target of $0.36, 2x of its current presale price upon listing. 

The blockchain-powered trading hub, offering 120,000+ assets and institutional-grade security, could redefine multi-market access ahead of its Q2 launch. With Dogecoin’s cultural cachet fading against utility-focused projects, the next generation of crypto adoption may hinge on bridges between traditional finance and decentralized tools.

DTX Climbs to $0.18 In Bonus Stage

The DTX Exchange’s public presale has entered its final bonus phase, with tokens priced at $0.18 ahead of an anticipated $0.36 listing, while DOGE price struggles. Over 700,000 investors have already secured positions, drawn by features like fractional multi-asset trading and 1,000x multipliers across 120,000+ instruments. 

With $15.1 million raised and audits by firms like SolidProof, the project combines institutional-grade infrastructure with retail accessibility—a balance rarely seen in decentralized finance. Market analysts highlight the presale’s 800% growth since its $0.02 launch as evidence of organic demand, with expectations of reaching 2x of its current presale price upon listing. 

Unlike traditional offerings limited to accredited investors, DTX Exchange’s public model allows broader participation, positioning it as the best new crypto to invest in for traders seeking early exposure. The capped supply of 475 million tokens further incentivizes urgency, as scarcity often correlates with post-launch momentum.

Crypto influencer @CryptoWolf_2025 recently tweeted, “DTX’s hybrid model bridges TradFi and DeFi better than anything I’ve seen. If you’re still ignoring this presale, you’re missing the next evolution in trading.” Such endorsements amplify its appeal, particularly as platforms like CoinMarketCap and CoinGecko list DTX, signaling mainstream readiness.

DOGE Price Drops to $0.20 as Market Cap Shrinks – What’s Next for Dogecoin?

Dogecoin’s valuation has dipped to $31 billion, with the DOGE price struggling to hold $0.20 during a 33% monthly decline. While meme coins like SHIB and PEPE face similar pressures, Dogecoin’s lack of utility-focused upgrades has left it vulnerable. Analysts note that without ecosystem expansions beyond social media hype, the DOGE price could stagnate further in Q2.

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Source: DOGE Price, Monthly Chart, CoinMarketCap

Historical patterns suggest meme coins often underperform during market rotations toward utility-driven assets. The DOGE price decline coincides with reduced trading volumes, down 12% week-over-week, as investors reallocate to projects offering tangible use cases. 

This trend mirrors 2021’s shift from speculative assets to platforms like Uniswap and Chainlink, which provided functional solutions. Despite Elon Musk’s continued advocacy, the DOGE price faces headwinds from newer tokens with clearer roadmaps. 

While Dogecoin remains a cultural icon, its reliance on viral moments contrasts sharply with DTX Exchange’s data-backed growth. As one trader noted, “Nostalgia doesn’t pay bills—DTX’s presale metrics show where the smart money’s going.”

JPMorgan Expert Says Dogecoin Investors Are Shifting to DTX

A JPMorgan report reveals growing institutional interest in hybrid platforms, with DTX Exchange cited as a top crypto to invest in due to its dual-chain architecture and VulcanX blockchain. The report notes a “quiet accumulation” trend among former Dogecoin holders, who now comprise 28% of DTX’s presale participants. 

This migration reflects broader demand for assets blending security, speed, and diversified yield opportunities. The DOGE price volatility has accelerated this shift, particularly as DTX’s non-custodial Phoenix Wallet and quantum-resistant protocols address security concerns common in meme-driven markets. 

Traders increasingly prioritize platforms offering stocks, ETFs, and forex alongside crypto—a niche DTX dominates. Its 200,000 TPS throughput and copy-trading tools further differentiate it as a good crypto to buy for long-term portfolios.

With listings on tier-1 exchanges imminent, experts predict DTX could capture 5% of Dogecoin’s current market cap—a move that would value tokens near $3. As the DOGE price tests critical support levels, the narrative shifts toward projects like this new DeFi project, which merges speculative appeal with structural resilience. The final presale window closes in weeks, marking a pivotal moment for retail and institutional traders alike.

Conclusion

As Dogecoin’s dominance wanes, hybrid platforms blending traditional and decentralized finance are gaining traction. DTX Exchange’s presale momentum—fueled by institutional-grade tools and unmatched asset diversity—positions it as a frontrunner in this transition. With the final bonus stage closing soon, early adopters may secure a stake in a project poised to reshape multi-market trading. 

Learn more about DTX Exchange below, and use the code ‘LIST2X’ to get a 100% bonus.

DTX Website

Buy Presale

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JPMorgan Predicts $14B First-Year Inflows for XRP and Solana ETFs in 2025

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  • JPMorgan’s Projection: XRP and Solana ETFs could see $14 billion in combined first-year inflows, supported by Bloomberg’s Eric Balchunas.
  • Regulatory Hurdles: Approvals are likely in 2025, with crypto-friendly Paul Atkins as SEC chair.
  • Market Impact: XRP ETFs may attract $4–8 billion, Solana ETFs $3–5 billion, reshaping altcoin adoption and market dynamics.

XRP is at the center of growing excitement around cryptocurrency exchange-traded funds (ETFs). Following the notable success of Bitcoin ETFs in 2024, attention has turned to XRP and Solana. Both investors and analysts are eager to explore how these altcoins might capitalize on ETF adoption. Senior Bloomberg ETF Analyst Eric Balchunas has endorsed JPMorgan’s projection, suggesting that the Ripple token and Solana ETFs could attract $14 billion in their first year.

JPMorgan analysts released a report estimating that XRP ETFs could attract $4 billion to $8 billion, while Solana ETFs could draw $3 billion to $5 billion in their first year. These projections rely on adoption trends observed with Bitcoin and Ethereum ETFs.

Bitcoin ETFs currently hold $108 billion, accounting for 6% of Bitcoin’s $2 trillion market cap. Ethereum ETFs, by comparison, manage $12 billion, representing 12% of Ethereum’s $400 billion market cap. Based on these trends, analysts suggest a 3% to 6% penetration rate for XRP and Solana ETFs, which would justify the $14 billion combined inflow estimate.

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Eric Balchunas supports this projection, calling it “a pretty reasonable guess.” His endorsement adds weight to JPMorgan’s predictions and highlights the growing anticipation for XRP and Solana ETFs in the investment community.

Challenges and Opportunities for XRP and SOL ETFs

Despite optimistic projections, regulatory hurdles remain a concern. JPMorgan notes that regulatory clarity and administrative changes are needed before XRP and Solana ETFs can gain approval. However, the report suggests these approvals could come as early as 2025.

President-elect Donald Trump’s pro-crypto stance offers a glimmer of hope. He has nominated Paul Atkins, a crypto-friendly candidate, for the role of SEC chair, signaling a potentially favorable environment for crypto ETF approvals.

Several asset management firms are already preparing to launch the altcoins’ ETFs. Canary Capital, 21 Shares, Bitwise, and WisdomTree are among those interested in XRP ETFs. Meanwhile, VanEck, Ark Invest, and Canary Capital have shown interest in Solana ETFs.

The launch of the altcoins’ ETFs could be transformative for these cryptocurrencies. Beyond the immediate inflow of funds, ETFs make it easier for retail and institutional investors to gain exposure to these assets. Such developments could significantly impact their market caps and long-term adoption.

Moreover, the success of these ETFs would further solidify the role of altcoins in mainstream finance. With combined inflows of $14 billion, XRP and Solana could emerge as leading players in the crypto market, challenging the dominance of Bitcoin and Ethereum.

JPMorgan Projects XRP and Solana ETFs Could Attract $15 Billion in First Year of Approval

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  • JPMorgan says XRP ETFs could raise $8.4B, boosting price to $2.69 with approval.
  • JPMorgan projects Solana ETFs may attract $5.2B, raising price to $197.7 if approved.
  • SEC to decide on XRP and Solana ETFs by 2025 as JPMorgan forecasts $15B inflows.

According to a JP Morgan report, XRP and Solana ETFs may attract between $3 billion and $8 billion in inflows once approved. The estimates made on this basis are relatively high and imply significant changes in both market capitalization and token prices similar to the adoption seen with Bitcoin and Ethereum ETFs.

Market prospects for XRP and Solana ETFs

JPMorgan states that the listed Bitcoin ETFs reached $108 billion in assets under management in the first year, equivalent to 6% of the Bitcoin market cap. Subsequently, Ethereum ETFs emerged, garnering $12 billion in assets or approximately 3% of Ethereum’s market capitalization in six months. The bank projects high inflows when using these metrics on XRP and Solana.

As for XRP, the 3% rate may attract $4.3 billion, bringing up its market cap to $150.8 billion from the current $146.5 billion. A 6% rate could be $8.4 billion to lift the cap to $154.9 billion. This increment would lead to the probability of XRP rising from $2.55 to $2.62 – $2.69, depending on the current supply of 57.5 billion tokens.

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JPMorgan Projects XRP and Solana ETFs Could Attract $15 Billion in First Year of Approval 4

Solana having a market cap of $90.5 billion, could attract $2.7 billion with 3% APY and $5.2 billion with 6% APY, taking its market cap to $93.2 billion and $95.7 billion, respectively. Currently, Solana has a circulating supply of 484 million tokens, and depending on the available market, it could go for anywhere from $192.5 to $197.7 in the next few weeks.

Approval could change market liquidity and accessibility

The U.S. SEC has not yet approved XRP and Solana-based ETFs and is still pending. Current patterns indicate a positive regulatory climate, and the SEC is expected to decide on XRP ETF applications on January 25, 2025. These applications came from many top firms, such as WisdomTree, 21Shares, and Bitwise.

Interest in Solana ETFs is also growing. In June 2024, VanEck, a major player, applied for a Solana ETF. Grayscale has also been trying to convert its Solana Trust Fund into an ETF, and a decision is due by January 23, 2025.

Moreover, as seen with Bitcoin ETFs, that let Bitcoin rise beyond $100,000 in 2024. This success also indicates the growing prospects of new products, such as XRP and Solana ETFs, in increasing market liquidity and openness.

Market Effects and Future Prospects

According to JPMorgan’s analysis, the key driver of change is the regulated investment products. This would help stabilize trading conditions and facilitate price discovery for XRP and Solana from a greater influx in flow.

While regulatory approval is still uncertain, forecasts expect certain changes under the new leadership in 2025. If approved, they can grant a broader exposure to digital assets, thus opening new investing opportunities for institutional and retail buyers.

JPMorgan Analysts See XRP Reaching $5 Soon, But Lightchain AI Dominates the Market With a $2.5 Target

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The cryptocurrency market has been a wild ride, with heavyweights like Bitcoin, XRP, and Ethereum maintaining their dominance. But fresh challengers are emerging, and one of the most exciting names right now is Lightchain AI (LCAI).

Currently in its presale phase, Lightchain AI is quickly garnering attention as a potential game-changer in the crypto space, offering investors a unique chance to get in early on what could be the next big opportunity.

JPMorgan analysts predict that XRP is on track to hit $5 soon, fueled by increasing institutional adoption and positive market sentiment. Meanwhile, Lightchain AI (LCAI), a lesser-known yet rapidly rising project, is building momentum, with analysts setting a price target of $2.5. Let’s dive into what’s driving the growth of both XRP and Lightchain AI, and why all eyes are on LCAI as it positions itself to shake up the market.

XRP’s Strong Fundamentals Push Its Price Higher

XRP, the cryptocurrency associated with Ripple Labs, has recently experienced a significant price increase, reaching a high of $2.90 before stabilizing around $2.50.

This surge is largely attributed to strong fundamentals, including the launch of Ripple’s new stablecoin, RLUSD, which is fully backed by U.S. dollar deposits and government bonds, enhancing stability and liquidity.

Additionally, the anticipation of a more crypto-friendly regulatory environment under the incoming Trump administration has boosted investor confidence. Analysts suggest that these developments could position XRP for further growth, with some predicting it could reach $5 by early 2025.

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Lightchain AI Game-Changer in Blockchain and AI Integration

While XRP is riding high on its use case as a payment solution, Lightchain AI is taking a different route, blending artificial intelligence with blockchain technology to create a decentralized platform for AI applications. Priced at just $0.003 during its presale, Lightchain AI has already caught the attention of both retail and institutional investors.

Unlike traditional cryptocurrencies that focus solely on financial applications, LCAI has positioned itself as a game-changer by incorporating AI. The Artificial Intelligence Virtual Machine (AIVM) allows developers to deploy AI-powered decentralized applications (dApps), creating a bridge between the rapidly growing fields of AI and blockchain. Lightchain AI’s Proof of Intelligence (PoI) mechanism rewards users for performing valuable AI computations, making it a highly efficient and energy-friendly network compared to other platforms.

This unique fusion of AI and blockchain has drawn interest from across industries, including healthcare, logistics, finance, and decentralized governance. As the demand for AI-powered solutions continues to grow, LCAI is positioned to disrupt traditional markets and has the potential to become a leader in the blockchain and AI space.

Why LCAI Could Dominate the Market

While XRP’s growth prospects are promising, Lightchain AI has the potential to dominate the market with its innovative approach and impressive tokenomics. With a $2.5 price target for 2025, many analysts believe LCAI could outperform XRP due to its deflationary token model, growing real-world utility, and its ability to tap into the lucrative AI market.

Here’s why LCAI could emerge as a top contender in the next bull run.

  1. Unique Technological Advantage LCAI’s combination of AI and blockchain positions it at the forefront of technological innovation. Its AIVM and PoI mechanisms allow it to handle real-world applications, which could give it a competitive edge over other tokens, including XRP.
  2. Scalability and Adoption The platform’s ability to scale decentralized applications while integrating AI into blockchain workflows sets it apart from other blockchain projects, including XRP. As more businesses adopt blockchain and AI technologies, LCAI’s adoption is expected to grow exponentially.
  3. Deflationary Tokenomics LCAI’s deflationary model, where a portion of transaction fees is burned, ensures that the token supply decreases over time, leading to increased scarcity. This mechanism could drive up the value of the token as demand rises.
  4. Broad Industry Use Cases LCAI is not confined to a single use case. Its applications span across industries, including finance, healthcare, and governance. This broad applicability makes it a long-term play that could disrupt traditional systems in numerous sectors.

Can LCAI Surpass XRP’s Gains?

While XRP’s rise to $5 is highly probable in the near future, LCAI offers a different growth trajectory due to its unique technological foundation.

With a price target of $2.5 by 2025, LCAI’s early-stage presale price of $0.003 provides one of the highest return potentials in the market. As the AI revolution intersects with blockchain, LCAI is poised to capture a significant share of both markets.

For investors looking to diversify their portfolios, LCAI offers an opportunity to get in early on a token that has the potential to revolutionize multiple industries. As Ripple faces competition from other payment solutions, LCAI’s focus on AI and blockchain could propel it to greater heights than XRP, positioning it as the next big thing in crypto.

https://lightchain.ai

https://lightchain.ai/lightchain-whitepaper.pdf

https://t.me/LightchainProtocol

SEC Approval for Crypto ETFs Faces Hurdles After Ethereum Greenlight, Says JPMorgan

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The re­cent approval of spot Ethereum e­xchange-traded funds (ETFs) by the U.S. Se­curities and Exchange Commission (SEC) has ignited hope­ for wider access to cryptocurrency inve­sting through ETFs. However, major investme­nt bank JPMorgan is tempering the prospects of similar approvals for othe­r popular cryptocurrencies like Solana (SOL) anytime­ soon.

Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, e­xpressed skepticism towards the­ SEC’s willingness to greenlight additional crypto ETFs. According to Panigirtzoglou, the­ SEC’s historical stance on classifying most cryptocurrencies as se­curities creates a significant hurdle­.

“The decision by the SEC to approve ETH ETFs is already a stretch given the ambiguity about Ethereum’s classification,” Panigirtzoglou said. “We believe the SEC is unlikely to go further by approving Solana or other token ETFs, considering their stronger view on these assets being securities compared to Ethereum.”

Shift in Crypto ETFs Approvals

Panigirtzoglou suggests that a shift in the­ regulatory landscape, with U.S. policymakers classifying most cryptocurre­ncies as non-securities, could pave­ the way for broader crypto ETFs approvals. Howeve­r, such legislation is currently non-existe­nt.

The SEC’s abrupt approval of spot Ethereum ETFs last we­ek raised eye­brows among some analysts. Several spe­culated that the decision might be­ politically motivated, considering the SEC’s last-minute­ re-engageme­nt with stakeholders after months of stalle­d conversations.

This move resulte­d in the approval of 19b-4 forms for eight spot Ethere­um ETF applicants – Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Inve­sco, Fidelity, and Franklin – in a single omnibus order on May 23rd. While­ S-1 registrations for these ETFs are­ still pending, several analysts anticipate­ trading to commence within the coming we­eks.

JPMorgan’s pessimism regarding future­ crypto ETF approvals contrasts with the optimism expresse­d by other analysts. Standard Chartered Bank’s Ge­offrey Kendrick rece­ntly predicted the gre­enlight for Solana and XRP ETFs in 2025. Similarly, TD Cowen’s Jaret Se­iberg anticipates a wider range­ of crypto ETFs, including basket funds encompassing multiple crypto toke­ns, to emerge within the­ next year.

The contrasting vie­wpoints highlight the current uncertainty surrounding crypto ETF re­gulations in the United States. While­ the Ethereum ETF approval signifie­s a potential shift, the path forward for broader acce­ss to various cryptocurrencies through ETFs remains uncle­ar.

Related Reading | Solana (SOL) Hints at Rebound Amid Analyst Optimism and ETF Prospects

JPMorgan Raises Bitcoin Production Cost Estimate to $45,000 Post-May 2024 Halving Event

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JPMorgan increase­s its estimate for the cost of producing a bitcoin to $45,000, see­n as a surprising shift in the mining landscape after the halving in May 2024. An increase­ in the amount comes after the­ initial projection of a cost of $42,000 by the investme­nt bank in February, expecting costly transactions of a high short-te­rm surge.

“We previously anticipated a significant drop in hashrate post-halving as unprofitable miners exit the bitcoin network,” explained Nikolaos Panigirtzoglou, lead analyst for the report. “This appears to be happening, albeit with some delay.”

Hashrate is a key crypto te­rm that reflects the combine­d computational power allocated to guarding the structure­ of Bitcoin. A low rate is supposed to indicate fe­wer miners and fewe­r resources but create­s room for the mining of new coins while we­akening the security of the­ network.

Initially, JPMorgan predicted a heavy fall in hashrate­, but that has been averte­d. Some miners that are not as e­fficient have indee­d disappeared, but the ove­rall hashrate hasn’t changed that much. This fact, as added to a ste­ady consumption of dead power, has raised the­ production cost by a couple of dollars and stationed it at $45,000.

Bitcoin’s Evolving Volatility Trends in 2024

Bitcoin has long bee­n the subject of criticism due to its notorious volatility, with de­tractors dismissing it as a mere speculative­ asset. However, re­cent data and analysis challenge this pe­rception. A chart by Alex Thorn reve­als that BTC’s 30-day volatility is comparable to top-performing US stocks, suggesting that volatility isn’t inhe­rently negative.

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Source: Alex Thorn

The­ volatility of the SPY index is often lowe­r, but this is partly due to the contrasting performance­s within its components—the outperforming “Magnifice­nt-7” stocks versus the underpe­rforming “Not-so-Magnificent-493.” This comparison helps contextualize­ Bitcoin’s volatility within broader market dynamics.

Bitcoin’s market be­havior is evolving. Historically, its bull markets are characte­rized by sharp, rapid price increase­s, while bear markets te­nd to be prolonged and gradual, with volatility decre­asing during downturns. Along with increases in the stock marke­t volatility during market falls, BTC’s volatility decrease­s.

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Source: checkonchain

The peak leve­ls of Bitcoin’s realized volatility have be­en decreasing ove­r time. In 2024, Bitcoin’s volatility ranged betwe­en 40% and 60%, significantly lower than in previous bull runs in 2017 and 2021. This tre­nd suggests a maturing market.

Related Reading | Filecoin (FIL) Poised For Upward Move: Analyst Eyes $15 Target

Bitcoin Rally Faces Halving Headwinds: JPMorgan’s Analysis Sparks Intense Debate

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As Bitcoin (BTC) hovers within the $50,000-$52,000 range, market participants anticipate a surge leading up to the upcoming Bitcoin halving for April 2024. However, JPMorgan, a prominent financial institution, contends that the halving’s impact has already been accounted for in current prices.

Following a brief lull in January, individual investors are re-engaging with the cryptocurrency arena amidst a recent surge in prominent digital assets such as BTC and Ethereum, according to JPMorgan Chase & Co analysts.

Analysis reveals a notable increase in Bitcoin outflows from smaller wallets, often associated with retail traders, surpassing inflows from institutional investors. This trend persists even with new spot Bitcoin exchange-traded funds (ETFs), as Mr. Nikolaos Panigirtzoglou and his team highlighted.

With BTC poised for its sixth consecutive month of gains, investors eagerly await significant developments within the cryptocurrency sector. The strategists at JPMorgan penned:

“The revival of the retail impulse in February perhaps reflects the anticipation of three main crypto catalysts over the coming months: the Bitcoin halving event, the next major upgrade of the Ethereum network and the prospect of approval of spot Ethereum ETFs by the Securities and Exchange Commission in May. We believe that the first two catalysts are largely priced in, while for the third catalyst, we see only a 50 per cent chance.”

Bitcoin’s Ongoing Rally Shows Signs Of Tapering Off

However, the ongoing rally in BTC prices shows signs of tapering off, hinting at a potential downturn as BTC braces for its first weekly losses in over a month. Over the past week, Bitcoin prices have trended 1.20% into negative territory, struggling to maintain a position above $51,000. If this trend persists, it would mark Bitcoin’s first negative week since the inception of its recent rally in late January.

Despite the imminent arrival of the April halving event, a customary occurrence known for its reduction in the supply of Bitcoin and consequent stimulation of price momentum, certain market analysts are issuing warnings regarding the potential limitations on upward movement in the cryptocurrency’s value as the event approaches.

Presently, demand for Bitcoin ETFs significantly outstrips BTC supply by a factor of 13x. This divergence is expected to widen further with the halving event on the horizon. Certain market analysts anticipate BTC prices to surge to $273,000 post-halving.

However, amidst the optimism, concerns linger regarding potential downside risks. The author of the stock-to-flow model, PlanB, asserts that a BTC price plunge below $40,000 seems improbable. Nonetheless, a correction of up to 20% from current levels is not ruled out.

Grayscale Loses Liquidity Edge Over Blackrock, Fidelity Bitcoin ETF: JPMorgan Analysis

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According to JPMorgan, BlackRock, and Fidelity’s spot bitcoin, exchange-traded funds (ETFs) already possess an advantage over Grayscale Bitcoin Trust (GBTC), which holds the largest assets under management, particularly in two liquidity metrics. Despite a slowdown in outflows from Grayscale’s GBTC during the fourth-week post-approval by the U.S. Securities and Exchange Commission (SEC), JPMorgan anticipates the fund will trail behind the newly established ETFs, specifically those from BlackRock and Fidelity, unless it implements significant fee reductions, as stated in the report.

The first metric, JPMorgan’s gauge for market breadth based on the Hui-Heubel ratio, indicates substantially lower figures for BlackRock and Fidelity ETFs compared to GBTC, approximately four times less, signifying broader market coverage for these ETFs, according to the report penned by JPMorgan analysts led by Nikolaos Panigirtzoglou on Wednesday.

The second metric evaluates the deviation of ETF closing prices from their net asset value on average. Analysts note that the ETF price deviation from the net asset values of Fidelity and BlackRock’s spot bitcoin ETFs nearly mirrors that of the SPDR Gold Shares ETF in the latest week, indicating a marked improvement in liquidity. Conversely, deviations for the GBTC ETF remain higher, indicating lower liquidity.

Furthermore, the report highlights that without a reduction in GBTC fees, the fund is likely to experience more outflows and lose assets to alternative ETFs, particularly those offered by BlackRock and Fidelity.

On an another note,

Grayscale CEO Calls for Approval of Options Trading for Bitcoin ETFs

Grayscale’s CEO emphasized the benefits of options for investors, citing their role in facilitating price discovery and navigating market dynamics. In a post on Feb. 5, Grayscale CEO Michael Sonnenshein advocated for regulatory approval of exchange-listed options for spot Bitcoin exchange-traded funds (ETFs). He asserted that options offer value to investors by aiding in “price discovery and can help investors better navigate market conditions or achieve desired outcomes, such as generating income.”

An exchange-traded option represents a standardized contract enabling the purchase (via a call option) or sale (through a put option) of a specified quantity of a particular financial asset at a predetermined price (the strike price) on or before a specified date. Options trading allows investors to forecast the future movement of specific stocks, bonds, or the broader stock market. Within options contracts, traders have the freedom — though not the obligation — to buy or sell an underlying asset by a specified date at a predetermined price.

Sonnenshein highlighted that when the SEC sanctioned the first Bitcoin futures ETF in October 2021, listed options for the ETF became available for trading the following day thanks to automatic effectiveness, which allowed them to adhere to existing regulations.