JPMorgan believes that the growth of BTC in July will not be the beginning of a new long-term trend. And they are waiting for buyer activity to show up in August.
According to bank analysts led by Nikolaos Panigirtzoglou, the recovery in the cryptocurrency market is expected to be temporary.#JPMorganstated that the price of#BTCis still too high compared to its production cost and compared to gold. The bank continues to expect a rebound in BTC futures positions on the Chicago Mercantile Exchange (CME) in August.
The report also states that Bitcoin and gold are expected to benefit from a higher likelihood of Trump winning the election. Because "Trump's second presidency is seen by some investors as friendlier to cryptocurrency companies and to cryptocurrency regulation, unlike the current Biden administration"
Are JPMorgan analysts right this time? On May 21, they wrote that BTC was overbought, despite the first local correction. And then it turned out that this was only the beginning of a long range. With overbought unloading on the weekly timeframe (RSI reached 47 in July).
But at the same time:
- On November 9, 2023, JPMorgan stated that the crypto market was overheated, and a little later in November - that the launch of spot Bitcoin ETFs would not bring a significant influx of capital into the industry. The#BTCprice increase since then was about +75% at its peak.
- On February 22, 2024, JPMorgan stated that the BTC rally is driven by impulsive decisions of retail investors, and not by institutions or market fundamentals. The#BTCprice increase after that was about +25%.
