JPMorgan has cited its optimism for cryptocurrencies after the BTC production cost declined. The bank is bullish for the segment in 2026 despite tokens recording lows since the recent days. It has also addressed a connection between BTC and Gold to reiterate its stance towards the flagship crypto.
JPMorgan on Cryptocurrencies
JPMorgan has noted a decline in Bitcoin’s production cost to around $77,000 and is anticipating a new equilibrium for the token. Most importantly, the bank has estimated that cryptocurrencies could recover in the remaining months of the year, given there is a renewed institutional inflow and the possibility for clarity on US crypto legislation.
Notably, a prolonged trading below the production cost could pressurize miners, but JPMorgan expects the trend to self-correct as the aggregate production cost could lower further.
JPMorgan has further laid out its expectation by saying that the shift in the crypto market could be led primarily by institutional investors instead of retail traders or DATs, that is, digital asset treasuries.
The BTC and Gold Connection
JPMorgan has also noted a connection between Gold and BTC. The bank has underlined that even though the precious metal has outperformed the flagship token since October 2025, it has also gained higher volatility. This, in the long-term, makes Bitcoin tokens more attractive even though their prices are significantly down.
BTC was last seen trading at $67,160.83, up by 0.08% over the last 24 hours, and down by 5.61% in a week. It is forecasted to grow by 30.40% in the next 3 months to exchange hands at around $88,242, amid a high volatility of 11.72%. A decline after brief consolidation has triggered bearish sentiments, but the 14-Day RSI remains neutral at 32.07 points.
Crypto Market in General
Overall sentiments across the crypto market are bearish, as reflected in the FGI of 8 points. The collective market cap has recovered slightly by 0.69% to $2.3 trillion; however, it remains massively down from a high of over $3 trillion.
A common belief is that the crypto market would eventually rebound if further regulatory clarifications underline the progressive space. This includes the much-talked-about Clarity Act. Also, the US Jan 2026 Employment data has signalled a low chance of a Fed rate cut in March 2026.
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