JPMorgan: Crypto Market Rebound Expected to be Temporary, Bitcoin Price Still Too High Relative to Production Cost and Gold
JPMorgan predicts that any rebound in cryptocurrency markets in the near future will likely be tactical and not a new long-term bullish uptrend. This is due to the high price of bitcoin compared to its production cost and volatility-adjusted comparison to gold. The bank expects liquidations to subside this month and looks for a rebound in Chicago Mercantile Exchange bitcoin futures positioning into August. Both bitcoin and gold are expected to benefit from the higher likelihood of a Trump election win, as a second Trump presidency is seen as more friendly towards crypto companies and regulations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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