World’s Biggest Bank Warns Crypto Gains May Be Short-Lived

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.

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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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.