BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

JPMorgan Analysts Doubt Sustainability of Crypto Market Recovery

by Dan K
Jul 21, 2024 - 10:40 pm
in Blockchain, Sticky
Cryptocurrency Prices and Market Analysis

JPMorgan Analysts Question Longevity of Crypto Market Recovery

According to JPMorgan analysts, the recent rebound in cryptocurrency prices should be viewed as tactical rather than the start of a lasting upward trend. The analysts cast doubt on the sustainability of the current crypto market recovery, suggesting that the surge in prices may be temporary.

Bitcoin’s Current Price vs. Production Cost

In a report released on Thursday, the analysts highlighted the disparity between Bitcoin’s current price of approximately $67,500 and its production cost of around $43,000. This significant difference suggests a potential for a mean reversion around the zero line, limiting the potential for significant upside in Bitcoin prices over the long term.

Bitcoin’s Volatility-Adjusted Value to Gold

They also compared Bitcoin’s volatility-adjusted value to gold, indicating a value of around $53,000. This comparison further supports the analysts’ view that the current price surge may not be sustainable.

Impact of Market Liquidations

The analysts noted that current liquidations in the crypto market, including those by Gemini, Mt. Gox creditors, and the German government’s sale of seized Bitcoins, have contributed to the recent weakness in Bitcoin futures. However, they anticipate a decrease in liquidations after July, leading to a rebound in Bitcoin futures from August. This projection aligns with the observed increase in gold futures.

Potential Impact of Trump’s Re-Election

Interestingly, JPMorgan analysts also suggested that both Bitcoin and gold could benefit from the potential re-election of former President Donald Trump. They explained that some investors perceive Trump as more favorable towards crypto companies and regulations compared to the current Biden administration. Furthermore, Trump’s potential trade policies could prompt emerging market central banks, particularly China’s central bank, to diversify their holdings by increasing their investments in gold.

Bitcoin Wallet Addresses and Market Metrics

As reported, the number of Bitcoin wallet addresses holding BTC has been decreasing over the past month, according to data from on-chain analytics firm Santiment. While this may initially seem concerning, Santiment suggests that it could actually be good news for investors.

“When we see mass liquidations like this, the probability of a continued rebound only increases”, the firm wrote. Meanwhile, there has also been a decline in the percentage of Bitcoin supply in profit, currently standing at 89.43% according to Glassnode data. While this might appear discouraging, other metrics paint a more bullish picture.

Institutional Accumulation and Market Trends

In a recent post, CryptoQuant founder Ki Young Ju noted that over-the-counter (OTC) markets are dominating centralized exchange markets, indicating institutional accumulation. Large whale wallets, including spot ETFs and custodial wallets, have acquired 1.45 million BTC this year, totaling approximately 9% of the circulating supply. The weekly inflow to these whale entities has surpassed the total for the entire year of 2021, with an impressive 100,000 BTC flowing in each week.

https://twitter.com/ki_young_ju/status/1813628483160977763

Despite a decline in trading volume on centralized crypto exchanges for the third consecutive month, Bitcoin spot markets have experienced a recovery, gaining 12% over the past seven days.

Tags: BlockchainCryptocurrencyRegulationWeb3
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Arthur Hayes speaking about Bitcoin as Japan’s new Prime Minister announces economic stimulus measures

Arthur Hayes Predicts $1M Bitcoin as Japan’s New PM Unveils Economic Stimulus

October 22, 2025

Arthur Hayes predicts Bitcoin could hit $1M as Japan’s new PM Sanae Takaichi launches economic stimulus, signaling potential...

blockchain

Bolivia’s President-Elect Rodrigo Paz Turns to Blockchain to Fight Corruption

October 20, 2025

Bolivia’s new president Rodrigo Paz plans to use blockchain in public procurement and crypto asset declarations as part...

Metaplanet and Bitcoin Magazine logos, symbolizing their new partnership to expand operations in Japan.

Japan Moves Toward Allowing Banks to Buy Bitcoin Under New Regulatory Framework

October 19, 2025

Japan’s regulators are reviewing changes that could let banks buy and hold Bitcoin, signaling a major shift in...

24H HOLD token price chart showing 35% surge despite market pullback

Crypto markets surge as Trump confirms October 31 summit with Xi Jinping

October 19, 2025

Crypto markets rebound after Trump confirms October 31 summit with Xi Jinping, easing US-China tensions and sparking optimism...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service