JPMorgan analysts predict that any upcoming crypto price rebounds will be temporary and strategic rather than a sustained trend.
They highlight Bitcoin’s current price of around $67,500, significantly higher than its production cost of $43,000, and its volatility-adjusted comparison to gold at $53,000, suggesting limited long-term upside potential.
The analysts expect crypto rebounds to start from August as liquidations, driven by sales from Gemini, Mt. Gox creditors, and the German government, decrease. They also foresee a rebound in Bitcoin futures from August, paralleling recent gold futures increases.
JPMorgan analysts indicate that a potential second Donald Trump presidency could benefit Bitcoin and gold, as some investors view Trump as more favorable towards crypto regulations.
Additionally, Trump’s trade policies might lead to increased gold diversification by emerging market central banks, particularly China’s.
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