JPMorgan analysts are suggesting that any recent gains in cryptocurrency prices are likely to be short-term rather than indicative of a lasting upward trend.
They highlight that Bitcoin’s current value of around $66,900 is notably above its production cost of $43,000 and its volatility-adjusted value compared to gold, which is approximately $53,000.
The report, led by Nikolaos Panigirtzoglou, indicates that the significant disparity between Bitcoin’s price and its adjusted value suggests limited potential for long-term price increases.
They expect that the recent turbulence in Bitcoin futures, influenced by factors such as liquidations and government sales of seized bitcoins, will ease after July.
This should lead to a recovery in Bitcoin futures starting in August, similar to trends observed in gold futures.
The analysts also note that a possible second term for Donald Trump could positively impact Bitcoin and gold.
They suggest that Trump might be more favorable toward crypto policies compared to the current administration and that his trade policies could lead to increased gold purchases by central banks in emerging markets, including China.
BNY Mellon, the largest custodian bank in the U.S., has reportedly secured an exemption from the SEC’s Accounting Bulletin 121 for its institutional crypto custody operations.
Charles Hoskinson, co-founder of Cardano and Ethereum, has raised concerns about how former President Donald Trump and Vice President Kamala Harris approach cryptocurrency policy.
The Bank of Canada has announced that it is winding down its efforts on retail central bank digital currency (CBDC), as per an update on its website.
Circle is preparing for its initial public offering (IPO) and is set to relocate its headquarters to Wall Street in 2025, according to CEO Jeremy Allaire.