JP Morgan, the largest bank in the United States, has a positive outlook for the cryptocurrency market in 2025.
According to a report titled “Alternative Investments Outlook and Strategy”, led by managing director Nikolaos Panigirtzoglou, the bank highlights several incentives that fuel its optimism.
In the document, JP Morgan analysts identify “several factors fueling its bullish outlook.” Among them, they point to the emergence of “downgrade trading,” a trend in which investors seek refuge in alternative assets such as gold and bitcoin to protect themselves against economic instability.
Analysts at JP Morgan see a possible victory of Donald Trump in the upcoming US elections as a key factor for Bitcoin.
They suggest that such a result could strengthen the trend of degradation trade through expansive fiscal policies and tariffs, thus benefiting BTC.
In fact, analysts at the research and brokerage firm Bernstein predict a scenario of bitcoin at USD 90,000 in case the Republican wins in November, as reported by CriptoNoticias.
Other financial institutions have shared this optimistic view. For example, Standard Chartered predicts that the price of BTC will reach $250,000 in 2025.
Furthermore, JP Morgan analysts emphasize that growing geopolitical tensions (for example, the war in the Middle East) could cause speculative institutional investors, such as hedge funds, to favor gold and bitcoin. But the same would not happen with ether (ETH), the Ethereum cryptocurrency which, along with BTC, also has an exchange-traded fund (ETF). This is because it is not considered in the same way, possibly due to differences in its adoption, regulation or risk perception compared to bitcoin.
This idea is shared by trader Scott Melker, who believes that the geopolitical conflict could be positive for bitcoin “if the currency evolves into the safe haven asset that we hope it will become.”
Other reasons supporting JP Morgan’s bullish stance on digital assets include Morgan Stanley’s recent permission for its 15,000 advisors recommend investing in spot bitcoin ETFs to their clientsas reported by CriptoNoticias.
Additionally, the completion and extension of most liquidations related to previous bankruptcies such as Mt. Gox and Genesis, as well as the German government’s bitcoin sell-off. Also, they anticipate that FTX bankruptcy cash payments, scheduled for late 2024 or early 2025could be reinvested in cryptocurrencies.
The market capitalization of stablecoins has also shown a significant recovery, approaching $180 billion, a level seen before the Terra/Luna collapse.
Despite these factors, the JP Morgan report notes that US legislation on stablecoins is still uncertain and it is not known when it will be approved by Congress, probably in 2025. They expect that, once regulated, stablecoins will become more mainstream , benefiting those that meet US requirements. and presenting challenges to those who do not.
Expectations for next year are driven by growing institutional investment in bitcoin, the scheduled halving effect and other regulatory developments, suggesting a prosperous 2025 for the cryptocurrency market.
“Overall, we are bullish on digital assets through 2025,” JP Morgan analysts conclude.
This article was created using artificial intelligence and edited by a human Editor.