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JPMorgan: Crypto Market Rebound Expected to be Temporary, Bitcoin Price Still Too High Relative to Production Cost and Gold

JPMorgan: Crypto Market Rebound Expected to be Temporary, Bitcoin Price Still Too High Relative to Production Cost and Gold

CointimeCointime2024/07/22 10:13
By:Cointime

JPMorgan predicts that any rebound in cryptocurrency markets in the near future will likely be tactical and not a new long-term bullish uptrend. This is due to the high price of bitcoin compared to its production cost and volatility-adjusted comparison to gold. The bank expects liquidations to subside this month and looks for a rebound in Chicago Mercantile Exchange bitcoin futures positioning into August. Both bitcoin and gold are expected to benefit from the higher likelihood of a Trump election win, as a second Trump presidency is seen as more friendly towards crypto companies and regulations.

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