JPMorgan analysts pointed out that factors that may drive the cryptocurrency market up in the short term include: October's "Uptober" effect, the potential impact of the Fed's interest rate cuts, the approval of Bitcoin ETF options and Ethereum Pectra upgrades.

If you also want to dig deep into the cryptocurrency circle and maximize your investment returns, but you can't recognize the market, then no matter how good the opportunity is, it has nothing to do with you. Follow me on the homepage, and I will share spot codes, bull market layout strategies, and 100-fold potential coins for free every day!

Since the U.S. Federal Reserve (Fed) announced a sharp interest rate cut of 50 basis points last month, the cryptocurrency market has rebounded. After experiencing a decline last week due to geopolitical turmoil in the Middle East, Bitcoin once again reached $64,000 on Monday (7), reaching a high of $64,466.

However, selling pressure has emerged in recent days. Bitcoin has repeatedly retested the $62,000 level after midnight today (9th). At the time of writing, it is reported at $62,145. Whether it can hold this level and continue to rise remains to be seen.

Bitcoin 15-minute candlestick chart. Source: OKX

However, regarding the future market trend, JPMorgan analysts pointed out several factors that may drive Bitcoin up in the short term in a report released on Monday, including:

October is usually a good month for growth

First, analysts pointed out that based on historical data, October is usually a month with better performance in the cryptocurrency market, also known as "Uptober":

While previous performance is not necessarily indicative of future performance, we believe that the Uptober effect will continue to manifest.

In the past 11 years, the probability of Bitcoin closing higher in October was 8/11, with an average increase of 20.88%. Source: Coinglass

The Fed's rate cuts have yet to show effects

The interest rate cuts initiated by the US Federal Reserve last month are generally believed to bring more capital inflows to the cryptocurrency market. However, JPMorgan analysts pointed out that the potential impact of the Fed's interest rate cuts has not yet been shown, and the correlation between the overall market value of the cryptocurrency market and the US federal benchmark interest rate is still weak, at 0.46:

Since the Fed cut interest rates on September 18, we have not seen cryptocurrencies surge in response to rate hikes, and the market may continue to wait before a quick turnaround.

Bitcoin ETF options approved for trading

In mid-September, the U.S. Securities and Exchange Commission (SEC) approved BlackRock to list and trade options on its Bitcoin spot ETF on Nasdaq, which is considered another potential catalyst for market growth:

Through options trading, investors can now participate in ETF investments in a more flexible way and increase Bitcoin liquidity.

Ethereum Pectra Upgrade Coming Soon

Finally, the analyst reminded investors of a major event that they may have overlooked, namely that Ethereum may soon undergo a Pectra upgrade in Q4 or Q1 next year, which is another major update following the last Cancun upgrade.

Analysts at JPMorgan wrote:

Pectra will implement over 30 Ethereum Improvement Proposals to improve network efficiency, expand account abstraction, and more.

We believe that this upgrade will bring structural changes to Ethereum, which will improve Ethereum's operational efficiency and adoption rate in the long run.