Odaily Planet Daily News JPMorgan analysts say any rebound in cryptocurrency prices is likely to be tactical (temporary and strategic) rather than the start of a lasting uptrend. They note that Bitcoin's current price of about $67,500 is high compared to its production cost of about $43,000 and the volatility-adjusted gold price of about $53,000. The divergence between Bitcoin prices and JPMorgan's volatility-adjusted gold price "suggests a mean reversion to near the zero line, limiting the potential for long-term gains in Bitcoin prices," JPMorgan analysts wrote in a report on Thursday. The analysts reiterated that cryptocurrencies are expected to rebound from August as liquidations decrease after July. They noted that Bitcoin futures have recently been weak due to the liquidations of Gemini and Mt. Gox creditors and the sale of seized Bitcoin by the German government. Analysts say these liquidations are likely to subside after July and expect Bitcoin futures to rebound from August, in line with the recent rise in gold futures. "We believe momentum traders such as commodity trading advisors have played a major role in driving gold futures. Gold's momentum signal surged in July to overbought territory last April," the analysts said. Gold is expected to benefit from the potential re-election of Donald Trump, according to JPMorgan analysts. Analysts said some investors see Trump as more favorable to cryptocurrency companies and regulation than the current Biden administration. They added that Trump's potential trade policies could lead to more diversification into gold by emerging market central banks, especially China's central bank.