17:05 ▪ 3 minutes read ▪ Written by Michael A.
Cryptocurrencies continue to establish themselves in traditional finance, despite often significant volatility. Now major Wall Street companies are taking a keen interest in it. Among them is JPMorgan, which just released its predictions for 2025, a bright future for Bitcoin and digital assets. This shift is based on a variety of factors, from regulatory changes to geopolitical tensions that encourage investors to diversify their holdings.
Why JPMorgan is betting on cryptocurrencies
According to JPMorgan, which announced last July that a crypto market recovery was imminent, cryptocurrencies could thrive, especially thanks to Donald Trump’s possible return to the White House. Analysts believe such wins will strengthen the “subsidence trade,” or the tendency for investors to turn to alternative assets such as gold and Bitcoin during times of economic instability.
In addition, initiatives from traditional sectors, such as Morgan Stanley’s recommendation of a Bitcoin ETF, are also supporting the market. Other positive signals include:
The major liquidations related to the Mt.Gox and Genesis bankruptcies are almost complete. Stablecoin market capitalization is once again approaching its previous peak of $180 billion. Cash payouts from the FTX scandal expected by 2025 could spur investment in cryptocurrencies.
Bitcoin at the center of predictions
Despite the uncertainty, Bitcoin price is benefiting from the current momentum. The current price is about $67,000, which is higher than JPMorgan’s estimated production cost of $47,000. This difference is appealing to speculators, especially since a volatility-adjusted comparison of Bitcoin and gold puts BTC at about $63,000.
JPMorgan also notes that increased regulation of stablecoins could favor cryptocurrencies. However, some gray areas remain, particularly regarding the timeline of US law on this issue.
However, beginners should try it out before diving in, but AI crypto and meme coins are in full swing and are worth your attention.
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Micaiah A.
Blockchain and virtual currency revolution! Affect the fragile social situation, have a serious impact on the economic society, and solve the problems of your choice.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
