JPMorgan: Crypto Market Recovery Will Not Last
According to analysts at JPMorgan, the recent increase in cryptocurrency prices should not be seen as a sustainable trend, but rather a short-term tactical rise.
The analysts expressed skepticism about the long-term viability of the current market recovery and suggested that the surge in prices could be short-lived. In their report released on Thursday, the analysts pointed out the discrepancy between Bitcoin’s current price of approximately $67,500 and its production cost of $43,000.
They also compared Bitcoin’s volatility-adjusted value to that of gold, which revealed a value of about $53,000. This significant difference, according to JPMorgan, suggests a possible return to the average value, limiting the potential for significant gains in Bitcoin prices in the future.
The analysts also noted that the recent selloffs in the crypto market, such as those by Gemini, Mt. Gox creditors, and the German government’s sale of seized Bitcoins, have contributed to the weakening of Bitcoin futures.
