Crypto continues to gain ground in traditional finance, despite often marked fluctuations. Now, the big players on Wall Street are taking a close interest in it. Among them, JPMorgan, which has just revealed its forecasts for 2025: a bright future for Bitcoin and digital assets. This turnaround is based on various factors, ranging from regulatory developments to geopolitical tensions which encourage investors to diversify their investments.
Why JPMorgan is banking on crypto
According to JPMorgan, which announced an imminent recovery of the crypto market last July, cryptocurrencies could prospernotably thanks to a potential return of Donald Trump to the White House. The analysts believe that such a victory would reinforce the “debasing trade” — a trend where investors are turning to alternative assets such as gold and Bitcoinn in times of economic instability.
In addition to this, traditional industry initiatives, such as the recommendation of Bitcoin ETF funds by Morgan Stanley, support this market. Other positive signals include:
- The significant liquidations linked to the bankruptcies of Mt. Gox and Genesis are largely behind us;
- The capitalization of stablecoins is once again approaching $180 billion, its previous peak;
- Cash payouts from FTX scandal, expected by 2025, could boost crypto investments.
Bitcoin at the heart of forecasts
Despite the uncertainties, the price of Bitcoin is benefiting from the current momentum. Its current price is around $67,000, above the cost of production estimated by JPMorgan, which stands at $47,000. This differential attracts speculators, especially since Volatility-adjusted comparisons between Bitcoin and gold put BTC at around $63,000.
JPMorgan also notes that theincreasing adoption of regulations on stablecoins could work in favor of cryptos. However, certain gray areas remain, particularly on the timetable for American legislation on this subject.
However, novices will need to test the waters before jumping in, but AI cryptos and memecoins deserve their attention, as they are booming.
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