JPMorgan is optimistic about the cryptocurrency market in 2026, expecting institutional funds to drive a recovery

According to CoinDesk, JPMorgan analysts are optimistic about the cryptocurrency market in their latest report, despite the significant market pullback. The analysts believe that the influx of institutional investor funds and regulatory clarity will support the next rally in the digital asset market.

The report notes that the production cost of Bitcoin has decreased to around $77,000, and although the current trading price is about $66,300, below this level, the bank believes this dynamic will eventually self-correct. Meanwhile, Bitcoin's appeal relative to gold has increased, as gold has recently outperformed Bitcoin, but its volatility has significantly increased. JPMorgan expects that further U.S. crypto legislation, such as the "Clarity Act," will provide the necessary clarity for institutional participation, thereby driving market recovery.