JPMorgan: The Crypto Rally Will Not Probably Last

According to JPMorgan analysts, the current rally in cryptocurrency prices is a short-term strategy and not the beginning of a sustained uptrend. 

They have pointed out that Bitcoin’s current value of approximately $67,500 is significantly higher than its production cost of about $43,000 and its volatility-adjusted comparison to gold, which is about $53,000.

In a report released Thursday, the analysts, led by managing director Nikolaos Panigirtzoglou, said the difference between Bitcoin’s price and JPMorgan’s volatility-adjusted comparison with gold indicates a possible reversion to the mean, limiting the potential for significant price rises over the long term.

Analysts predicted a recovery in the crypto market starting in August as settlements decline after July.