The recent rise in cryptocurrency prices is likely tactical and not the start of a prolonged upward trend, according to conclusions drawn by JPMorgan, as reported by The Block.
Experts noted that the current bitcoin price significantly exceeds its mining cost (~$43,000) and appears inflated compared to the “fair” price adjusted for volatility relative to gold (~$53,000). A substantial upward deviation from this parameter “limits the potential for long-term growth.”
Analysts predicted positive market dynamics in August due to the diminishing impact of actions by German authorities and the distribution of coins among clients of Gemini and Mt.Gox. In this scenario, the bitcoin price would align with gold futures, which have recently seen an increase.
Experts noted that both assets would benefit if Donald Trump wins the upcoming U.S. presidential election.
In addition to a more favorable stance compared to the Democratic Party’s position, they mentioned the Republican candidate’s plans to impose trade tariffs on Chinese goods. This would encourage central banks to diversify reserves in favor of precious metals.
Previously, former BitMEX CEO Arthur Hayes stated that investments in digital assets are the “best way to preserve wealth.” In this regard, the leading cryptocurrency is preferable to gold due to the absence of national control.
Speculation has begun on social media about a U.S. bitcoin reserve fund, which Trump is allegedly set to announce at the Bitcoin 2024 conference in Nashville.