Donald Trump

Bitcoin

when

President Donald Trump

JPMorgan thinks any bounce-back in the crypto market soon is just a short-term move and not the start of a long-term upward trend. The bank’s latest research report gave several reasons why they believe this. 
The report pointed out that the price of Bitcoin is currently too high compared to its production cost, which is around $43,000. Bitcoin was trading at about $67,220 when the report was released. 
<img loading="lazy" decoding="async" class="alignnone wp-image-558699 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-22_17-17-09.png" alt="JPMorgan thinks a bullish reversal is impossible for crypto market" width="2108" height="862" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-22_17-17-09.png 2108w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-22_17-17-09-300x123.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-22_17-17-09-1200x491.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-22_17-17-09-768x314.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-22_17-17-09-1536x628.png 1536w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSD_2024-07-22_17-17-09-2048x837.png 2048w" sizes="(max-width: 2108px) 100vw, 2108px"> 
JPMorgan analysts noted that Bitcoin’s price is also high when compared to its volatility-adjusted price relative to gold, which stands at $53,000. 
<h3 id="span-style-font-weight-400-liquidations-and-market-momentum-span">Liquidations and market momentum</h3> 
One reason for the weak momentum in Bitcoin futures has been the recent liquidations by creditors of Gemini, Mt. Gox, and the German government. These liquidations have been putting pressure on the market.&nbsp; 
However, JPMorgan expects these liquidations to wind down this month, which might give some temporary relief. The bank is also looking for a rebound in the positioning of Chicago Mercantile Exchange (CME) Bitcoin futures as we move into August. 
Related: <a href="https://www.cryptopolitan.com/jpmorgan-bitcoin-bullish-comeback-in-august/">JPMorgan says Bitcoin will make a bullish comeback in August</a> 
They believe this could provide some short-term support to the market. The bank also pointed out that both Bitcoin and gold are likely to benefit if former President Donald Trump wins the next election. JPMorgan <a href="https://www.jpmorgan.com/insights" rel="nofollow noopener" target="_blank">said</a>:&nbsp; 
<blockquote>
 “A second Trump presidency is seen by some investors as more friendly towards crypto companies and towards crypto regulations, in contrast to the current Biden administration.”
</blockquote> 
<h3 id="span-style-font-weight-400-jamie-dimon-s-weird-relationship-with-crypto-span">Jamie Dimon’s weird relationship with crypto</h3> 
Jamie Dimon, the CEO of JPMorgan, has been a consistent critic of cryptocurrencies, especially Bitcoin since at least 2014. He has often questioned the fundamental value and utility of cryptocurrencies. 
Jamie has referred to Bitcoin as a “pet rock” and a “hyped-up fraud.”&nbsp; In 2017, he called Bitcoin a “fraud” and compared it to the tulip bulb bubble. His criticisms also include the potential for cryptocurrencies to be used in illegal activities. 
He has repeatedly pointed out the use of cryptocurrencies in fraud, anti-money laundering, tax avoidance, and sex trafficking. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2022/01/931/523/dimon.jpg?ve=1&amp;tl=1" alt="JPMorgan thinks a bullish reversal is impossible for crypto market" width="931" height="523">
 <figcaption class="wp-caption-text">
 Jamie Dimon. Credits: Getty Images
 </figcaption>
</figure> 
Jamie estimates these illicit uses account for $50-100 billion in annual transactions, so he has been a strong advocate for strict regulation of the cryptocurrency industry. During a Senate hearing in 2023, he said if he were in charge, he would “close it down.” 
Despite his criticism of cryptocurrencies, Jamie sees value in the blockchain. He acknowledges blockchain’s potential for efficient movement of money and data. 
JPMorgan has even embraced blockchain technology through initiatives like the JPM Coin, a dollar-backed digital currency for client transactions. 
Interestingly, President Donald Trump has said that Jamie has softened his stance on cryptocurrencies. Trump said, “You ask Jamie Dimon. Jamie was, you know, very negative and now all of a sudden he’s changed his tune a little bit.”

JPMorgan thinks a bullish reversal is impossible for crypto market

Table of Contents

Cryptopolitan_News

Other articles published on Jul 22, 2024

BTC ETFs cross $17b, CrowdStrike outage, WazirX suffers $234m hack, ETH ETFs launch date | Weekly...

Cardano Hydra Team Advances Incremental Decommits and Prepares for Node v.9.0.0

Metaplanet Buys Bitcoin Worth $1.2M, Finalizing BTC Purchase Plans for Long-Term Holding

Final Chance to Get In Early In AI Token Being Called “Cardano Killer” as Dogwifhat Investors Pus...

Grayscale Launches AI-Focused Crypto Fund

Solana Price Rises Due to Political Developments

Join our free newsletter for daily crypto updates!