The cryptocurrency market has made another bullish move, led by the leading crypto Bitcoin. However, JPMorgan analysts say that any crypto rebound from here is unlikely to be long-lasting. Analysts also expect Bitcoin and gold to benefit from a potential second Donald Trump presidency.
A rebound in Bitcoin and altcoin prices won’t last!
As you have been following on Kriptokoin.com, the crypto market has been on an upward momentum over the past week. However, it remains unclear whether this will continue. JPMorgan analysts say that any rebound in crypto prices from this point on could be tactical (temporary and strategic) rather than the start of a permanent uptrend. They note that the price of around $67,500 that Bitcoin has seen in the recent rally is high compared to its cost of production, which is around $43,000, and its volatility-adjusted comparison with gold, which is around $53,000.
JPMorgan analysts led by managing director Nikolaos Panigirtzoglou wrote in a report on Thursday that the difference between the Bitcoin price and JPMorgan’s volatility-adjusted gold benchmark “points to mean reversion around the zero line, thus limiting any upside potential for BTC prices in the long term.”
Crypto rebounds expected from August!
Analysts reiterate that crypto rebounds are expected from August onwards as liquidations diminish after July. Bitcoin futures are expected to recover from the liquidation of Gemini and Mt. Gox creditors’ liquidations as well as the German government’s sale of confiscated BTC. Analysts say that these liquidations will likely subside after July and that they expect a rebound in Bitcoin futures from August onwards, in line with the recent gains seen in gold futures. In this context, analysts make the following assessment:
We believe momentum traders such as CTAs (commodity trading advisors) play a big role in gold futures. The momentum signal for gold rose in July towards the overbought zone last April.
JPMorgan comments on a potential second Trump presidency
Bitcoin and gold are expected to benefit from a potential second Donald Trump presidency, according to JPMorgan analysts. Analysts say some investors see Trump as more favorable for crypto companies and regulations than the current Biden administration. Analysts add that Trump’s potential trade policies could increase emerging market central banks, especially the People’s Bank of China, to turn to gold.
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