Cryptocurrency prices have seen a recent rebound, but JPMorgan analysts warn that this may not be a lasting upward trend. The analysts highlight the disparity between Bitcoin’s current price and its production cost, suggesting a mean reversion around $53,000. Recent liquidations in the crypto market have contributed to weakness in Bitcoin futures, but JPMorgan anticipates a rebound from August onwards.
JPMorgan analysts also suggest that both Bitcoin and gold could benefit from the potential re-election of former President Donald Trump. Investors perceive Trump as more favorable towards crypto companies and regulations, and his potential trade policies could prompt emerging market central banks to increase investments in gold. Trump’s popularity among the crypto community has been growing as his stance on cryptocurrencies evolves.
Despite a decline in the number of Bitcoin wallet addresses holding BTC and the percentage of Bitcoin supply in profit, other metrics indicate a more bullish picture. Data suggests that over-the-counter markets are dominating centralized exchange markets, indicating institutional accumulation. Large whale wallets have acquired a significant amount of BTC this year, with a weekly inflow surpassing the total for the entire year of 2021.
While trading volume on centralized crypto exchanges has declined for the third consecutive month, Bitcoin spot markets have experienced a recovery, gaining 12% over the past week. This data suggests that despite some concerning trends, there is optimism for a continued rebound in the cryptocurrency market. Santiment suggests that mass liquidations could actually increase the probability of a continued rebound, offering some reassurance to investors concerned about recent price movements.
