JPMorgan Chase: The crypto market will be influenced by several key factors such as Uptober and interest rate cuts in the coming months

According to reports, analysts at JPMorgan Chase pointed out that the cryptocurrency market will be influenced by several key factors in the coming months, including the seasonal "Uptober" trend, Federal Reserve rate cuts, Bitcoin ETF options trading and Ethereum's "Pectra" upgrade.

The report mentioned that historical data shows that over 70% of Bitcoin returns are positive during "Uptober", which may have a positive impact on market behavior. In addition, although the Federal Reserve has recently cut interest rates, JPMorgan Chase analysts point out that the broader cryptocurrency market has not yet seen the expected positive impact. They stated that while a declining interest rate environment usually supports risk assets, there is still weak correlation between total cryptocurrency market value and federal funds rate at 0.46.

Analysts said it is difficult to accurately predict how cryptocurrencies will respond to interest rate cycles due to lack of historical data. “Cryptocurrencies actually emerged in early-to-mid-2010s; for most of their existence time period, interest rates were close to zero. Stable interest rates rather than just low ones might be most beneficial for these markets."

Another potential catalyst is recent approval for spot Bitcoin ETF options trading. Analysts expect this could deepen liquidity and attract new market participants.