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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 in July last year that a recovery in the cryptocurrency market was imminent. Cryptocurrency has the potential to thriveespecially thanks to Donald Trump's possible return to the White House. Analysts believe these wins will strengthen the “downgrade trade.” Investors turn to alternative assets such as gold and Bitcoinn A period 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. Current price is approximately $67,000. Beyond production costs JP Morgan estimates it to be $47,000. This difference is particularly attractive to speculators. Volatility-adjusted comparison of Bitcoin and gold shows BTC at around $63,000.
JP Morgan also Regulatory adoption grows Stablecoins may work in favor of 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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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.