JPMorgan Chase analysts say the recent rise in Bitcoin and a number of other crypto assets is not evidence of a “bullish trend.” They believe that this is a short-term recovery and that the industry may face a correction in the near future, writes The Block.
Experts believe that the Bitcoin price of more than $67,000 is an inflated figure for the current market realities. According to them, the cost of mining the asset is around $43,000.
It should be noted that at the time of writing, the Bitcoin rate is holding at $67,248. The increase over the last week was 7%, according to TradingView.
JPMorgan officials also took into account the difference between the first cryptocurrency and a volatility-adjusted comparison with gold. They believe that these metrics indicate that any upside potential for Bitcoin in the long term is limited.
It should be noted that in March 2023, JPMorgan Chase stated that the first cryptocurrency would not be able to match gold in terms of nominal volume in investment portfolios.
The company allowed for a probable return of the crypto market to an upward trend in August 2024. By that time, the impact of payments from the Mt. Gox exchange and the sale of the first cryptocurrency by the German government will have completely dried up, which will push the industry to further growth, JPMorgan is confident.
In addition, experts paid attention to the situation around US presidential candidate Donald Trump. In their opinion, Bitcoin and gold will benefit from the politician’s possible victory in the upcoming elections.
They noted that investors expect the US government to soften its rhetoric towards the crypto industry when the head of state changes.
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Source: Cryptocurrency
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