JPMorgan Chase analysts claim that the recent rise in the rate of Bitcoin and a number of other crypto assets is not evidence of a “bullish trend.” In their opinion, we are talking about a short-term update and in the near future the industry may face a correction, writes Incrypted with a link to The Block.
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What experts say
Experts believe that the price of Bitcoin over $67,000 is too high indicator for current market realities. According to them, the production cost of the asset is around $43,000.
Note that at the time of writing, the Bitcoin exchange rate is at $66,814. The increase over the last week was 12.9%, according to TradingView.
JPMorgan representatives also took into account the difference between the first cryptocurrency and volatility-adjusted compared to gold. They believe that these indicators indicate the limitation of any growth potential for Bitcoin in the long term.
Note that in March 2023, JPMorgan Chase stated that the first cryptocurrency will not be able to compare with gold in terms of nominal volume in investment portfolios .
The company assumed a likely return of the crypto market to an upward trend in August 2024. At this point, the impact of payments from the Mt. Gox and sales of the first cryptocurrency by the German government will completely dry 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’s rhetoric regarding the crypto industry to soften when the head of state changes.
- Cryptocurrency