JPMorgan turns bullish on crypto in 2026 despite crash

Market Overview - The total digital asset market cap has decreased from $3.1 trillion to $2.3 trillion in one month, indicating a significant downturn in the crypto market [1] - Bitcoin (BTC) is currently trading at $67,610.98, down over 25% in value within the last month, while Ether (ETH) has lost more than 35% of its value, trading at $1,950.28 [1] Market Sentiment - The Crypto Fear & Greed Index is at 12, reflecting "extreme fear" prevailing in the market for several months [2] - Concerns are rising within the crypto community that the current market downturn could be worse than the winter of 2022, despite no major collapses like FTX [3] Institutional Outlook - JPMorgan Chase remains optimistic about cryptocurrencies, projecting a bullish outlook for 2026, driven by institutional investors and regulatory clarity [4][5] - Analysts at JPMorgan estimate Bitcoin's production cost to be around $77,000, suggesting that if BTC trades below this level for an extended period, it may lead to miner capitulation [6][7] Future Projections - JPMorgan anticipates that institutional inflows will be the primary driver of a rebound in crypto markets by 2026, rather than retail traders [7] - The bank believes that regulatory developments, such as the Clarity Act in the U.S., could further support the recovery of the crypto market this year [7]