In spite of recent regulatory headwinds the cryptocurrency market has rebounded strongly in the last month. Bitcoin (BTC), outperformed, JPMorgan (JPMorgan) stated last week in a report.

According to the bank, bitcoin was the most valuable cryptocurrency in terms of market capital. This is because it can be used as a hedge against a “catastrophic” scenario.

Recent banking sector problems also “exposed weaknesses of the traditional finance system given bank maturity mismatch is susceptible bank runs,” wrote analysts Nikolaos Panigirtzoglou.

The report stated that crypto supporters view the U.S. banking crisis as a vindication for the crypto ecosystem.

The launch of Bitcoin Orals two months ago has also been a benefit to Bitcoin, according to the note. This will, some claim, drive up transaction fees and increase revenues for miners, it said.

JPMorgan believes that the greatest support for bitcoin came from growing investor attention about next year’s Halving Event in April 2024 when mining rewards will be cut in half.

The report said that this would mechanically increase bitcoin’s production costs to $40,000 and create a positive psychological effect. This is because BTC’s historical production cost has served as a lower limit to its price.

Continue reading: U.S. Coinbase: Bitcoin outperforms banking system turmoil

Edited and spelled out by Parikshit Moishra.