The worst regulatory environment for crypto markets is behind us, the report said.
The hashprice, a measure of daily mining profitability, rose 5% from the end of November, the report said.
This week’s Crypto Biz also explores Microsoft’s board’s stance on Bitcoin, JPMorgan’s revision of mining stocks, MARA’s new BTC purchase and upcoming listings of crypto firms.
The strategic shift to a bitcoin accumulation model is due to pressure on profitability following the reward halving, the report said.
The bank updated estimates for a number of mining stocks in its coverage following third quarter results and recent gains in bitcoin and the hashrate.
Total crypto market cap jumped 45% in November, in the best monthly return to-date, the report said.
Leveraged MicroStrategy ETFs attracted $3.4 billion of inflows in November, the report said.
The Mastercard Multi-Token Network is connecting with JPMorgan’s ambitious Kinexys Digital Payments for faster settlement.
The total market cap of the miners the bank tracks grew 33% since the end October, the report said.
After leaving crypto liquidity firm GSR in 2023, former Millennium and Pimco executives are coming back to crypto by launching a dedicated advisory firm.
The banking giant was one of the early leaders in applying blockchain tech to traditional financial activities, executing over $1.5 trillion of transactions since its inception.
The network's monthly average hashrate surged to a record high, the report said.
According to JPMorgan analysts, a win for the Republican US presidential candidate Donald Trump could further fuel Bitcoin (BTC) price momentum. Retail Investors Turn To Bitcoin For ‘Debasement Trade’ In a recent client note, analysts at JPMorgan suggested that a Trump win might provide ‘additional upside’ for both BTC and gold, as retail investors increasingly view Bitcoin as a ‘debasement trade.’ Related Reading: Bitcoin Makes ATH Against Euro Due To Change In Dollar Strength, Details Inside In simple terms, a debasement trade is a strategy to protect purchasing power against the steady erosion of fiat currencies due to extensive money printing. Notably, the M2 money supply – a measure of total money in circulation – sharply rose during the coronavirus pandemic. This surplus in money supply led to heightened inflation, forcing the U.S. Federal Reserve (Fed) to raise interest rates to contain it. By purchasing BTC, retail investors aim to maintain their money’s value, hoping Bitcoin will act as a hedge against currency depreciation. The JPMorgan note states: Retail investors appear to be embracing the ‘debasement trade’ in an even stronger manner by buying bitcoin and gold ETFs. The retail impulse is also seen in meme and AI tokens the market cap of which has outperformed. Data from SoSoValue shows that Bitcoin exchange-traded funds (ETF) have attracted a whopping $1.3 billion in inflows over the past two days alone. As of October 30, the cumulative net inflow to US-based spot BTC ETFs is $24.18 billion. October’s total ETF inflows alone amount to $4.4 billion, marking it the third-highest month for BTC ETF inflows since their launch earlier this year. However, institutional investors appear to have slowed down on BTC futures activity recently, with analysts noting that Bitcoin futures have entered overbought territory, potentially introducing vulnerability for BTC’s near-term outlook. The client note highlights that credit and prediction markets lean toward a Trump win, unlike equities, foreign exchange (FX), and rates markets. The analysts conclude: Overall, to the extent a Trump win inspires retail investors to not only buy risk assets but to also further embrace the ‘debasement trade’, there could be additional upside for bitcoin and gold prices in a Trump win scenario. Where Is BTC Headed? Analysts Share Their Outlook Bitcoin is trading within 2% of reaching a new all-time high (ATH), driving renewed optimism among crypto analysts. Related Reading: Bitcoin Retail Demand Rises 13% In 1 Month: Time For Q4 2024 Rally? For instance, crypto analyst Timothy Peterson recently posited that BTC could surge to as high as $100,000 by February 2025. Meanwhile, crypto options trading data indicates that traders remain confident BTC will hit $80,000 by the end of November 2024, regardless of the election outcome. Veteran trader Peter Brandt, however, has urged caution, advising BTC bulls that a daily close above $76,000 is critical for confirming a true breakout. At the time of writing, BTC is trading at $71,798, down 0.1% in the past 24 hours. Featured image from Unsplash, Charts from FRED and Tradingview.com
The company missed consensus revenue expectations, analysts said.
These tokens are at a regulatory disadvantage to stablecoins due to their classification as securities, the report said.
The network hashrate has risen 4% so far this month, while the hashprice is up less than 1%, the report said.
Total crypto market cap was $2.02 trillion at the end of August, a 24% decline from this year's peak of $2.67 trillion in March, the report said.
Spot ether exchange-traded funds have seen net outflows of $0.5B since their launch, the report said.
The total market cap of the fourteen publicly listed mining stocks the bank tracks fell 18% since the end of last month, the report said.
Retail investors seems to have played large role in recent crypto selloff that saw sharpest correction since FTX, the bank said.
Riot will have the second-largest capacity among U.S. listed bitcoin miners following the acquisition, and the deal serves as the latest evaluation of underdeveloped power assets, the report said.
The bitcoin price is currently too high versus its production cost and relative to its volatility-adjusted comparison to gold, the report said.
Former US President Donald Trump has revealed that JPMorgan CEO Jamie Dimon, a well-known skeptic of Bitcoin and cryptocurrencies, has apparently “changed his tune,” with the potential to win the role of Treasury Secretary in the scenario where the former president once again wins the seat in the Oval Office. Trump’s comments come as Treasury […]
The aggregate market cap of the fourteen bitcoin miners listed in the U.S. that the bank tracks rose 29% since the end of June, the report said.
American multinational finance company, JP Morgan has maintained a bullish stance on the Bitcoin price outlook despite recent bearish trends. The bank has announced the timeline for the conclusion of the ongoing BTC liquidations, predicting a subsequent rebound in the market. JP Morgan Predicts Bitcoin Market Rebound In August In a research report on Wednesday, JP Morgan suggested that BTC liquidations should abate this July, foreseeing the start of a strong bull market as bearish trends caused by sell-offs subside. While the bank believes that a market recovery is imminent, it is also skeptical about the sustainability of high Bitcoin inflows in its year-to-date flow into crypto assets. Related Reading: Dogecoin Sees 868% Spike In Whale Buys, Bulls Ready For Breakout Rally For one, JP Morgan has revised and grossly reduced its former year-to-date crypto net flow from $12 billion to $8 billion. So far this year, Spot Bitcoin ETFs have been the major driver for substantial inflows into the crypto market. JP Morgan’s skepticism also stems from Bitcoin’s high price relative to its production cost and the price of gold. A crypto analyst from the bank, Nikolaos Panigirtzoglou has suggested that the bank’s reduction in the estimated year-to-date net flow was also due to the recent decline in Bitcoin reserves across exchanges. The decline in Bitcoin reserves over the past month is believed to be a result of the ongoing selling pressures and widespread BTC liquidations executed by Mt Gox creditors and the German government. As mentioned earlier, JP Morgan has predicted that this BTC sell-off will officially end in July, giving rise to a substantial bullish rally for Bitcoin in August. Following the bank’s predictions, many crypto analysts and community members have suggested that the recent upsurge in Bitcoin’s price is the continuation of a strong bull market. A crypto analyst identified as ‘CryptoYoddha’ on X (formerly Twitter) has revealed that the German government was preparing to sell their remaining BTC just before the bull run. Despite the aggressive selling by the German government and the subsequent market turmoil, the analyst noted that Bitcoin still appears bullish. About The Ongoing BTC Liquidations Earlier in June, Mt Gox announced that it would be making repayments to creditors in July. While the defunct Bitcoin exchange’s decision to start its repayment process comes as good news to creditors, there is also an underlying unease concerning potential Bitcoin sell-offs. Related Reading: Ethereum Bulls Gear Up For Recovery – Can Spot ETFs Push Price To New Highs? With creditors steadily receiving part of Mt Gox’s 142,000 BTC payment worth about $9 billion, the market fears are somewhat justified as a widespread Bitcoin dump would have a major impact on the price of the cryptocurrency. In addition to Mt Gox’s substantial Bitcoin redistribution plans, the German government has also been seen selling almost 100% of its Bitcoin holdings seized from criminals. These substantial crypto liquidations have put a major damper on the price of Bitcoin, triggering serious price declines that have significantly delayed the highly anticipated Bitcoin bull run. A crypto analyst identified as ‘Rekt Capital’ has indicated that the Bitcoin bull market based on standard halving cycles has already advanced by 40.1%. Featured image created with Dall.E, chart from Tradingview.com
Galaxy is one of several investors who have accused Richard Kim of misappropriating at least $3.67 million of company funds belonging to Zero Edge, his crypto casino.
If most of the liquidations by Mt. Gox creditors occur next month, crypto markets are expected to sell off in July then rebound in August, the report said.
Mining stocks outperformed bitcoin in the first half of the month as investors reacted positively to news of Core Scientific’s AI deal with CoreWeave, the report said.
JPMorgan predicts that the newly approved spot Ethereum exchange-traded funds (ETFs) will likely begin trading before the November US presidential elections, citing crypto’s increasing political significance. This outlook follows the US Securities and Exchange Commission’s (SEC) unexpected approval of eight spot Ethereum ETFs on May 23, marking a notable shift from the previous skepticism surrounding […]
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