JP Morgan: Cryptocurrency rally may be temporary! Trump's election is good for Bitcoin and gold

This site (120btC.coM): Bitcoin has escaped from the gloom recently and has been on the rise since the Trump shooting incident. It has surged by more than 11% in the past 7 days, once exceeding the $67,000 mark, setting a new record However, according to The Block, JPMorgan analysts believe in the latest report that any rebound in cryptocurrency prices may be temporary and strategic rather than the beginning of a lasting upward trend.

JPMorgan analysts led by Nikolaos Panigirtzoglou pointed out in a report on Thursday that Bitcoin hit $67,500, with production costs of about $43,000 and a volatility-adjusted price comparable to gold (about $53,000) In comparison, the price is already too high.

These JPMorgan analysts explained that the difference between Bitcoin’s price and JPMorgan’s volatility-adjusted price compared to gold “suggests a mean reversion near the zero line, thus limiting the potential for Bitcoin price to rise in the long term.”

The difference between Bitcoin price and JPMorgan’s volatility-adjusted gold price

Analysts point to the liquidation of Gemini and Mt. Gox creditors, coupled with the recent sale of seized Bitcoin by the German government currency, leading to recent weakness in Bitcoin futures, but these liquidations are likely to dissipate after July, and Bitcoin futures are expected to rebound from August, consistent with the recent upward trend in gold futures: We believe that CTA (Commodity Trading Advisors Momentum traders such as ) were instrumental in driving gold futures higher, with 7 gold’s momentum signals surging into overbought territory last April.

Trump’s election is good for Bitcoin and gold

In addition, in response to the US presidential election situation, JP Morgan analysts believe that if Trump is re-elected as president, gold and Bitcoin are expected to benefit from Trump’s second term. Benefit.

Analysts pointed out that some investors believe that Trump is more supportive of cryptocurrency companies and more regulatory-friendly than the current Biden administration, and Trump’s potential trade policies may cause emerging market central banks, especially the Central Bank of China, to Increase diversification into gold.

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