JPMorgan has noted that despite recent regulatory challenges, the cryptocurrency market has rallied strongly over the last month, with bitcoin outperforming. The bank says that bitcoin and gold gained at the same time as both are viewed as hedges to a “catastrophic scenario.” Recent problems in the banking sector have also “exposed the weaknesses of the traditional financial system given bank’s maturity mismatch is susceptible to bank runs,” which crypto supporters view as a vindication of the crypto ecosystem. The most important support for bitcoin has come from rising investor focus about next year’s halving event, scheduled for April 2024, when mining rewards are cut in half.

(By Will Canny)