Bitcoin is above the EMA50 and EMA200 in the four-hour time frame and is trading in its ascending channel. Capital withdrawals from Bitcoin ETFs or risk off sentiment in the US stock market will pave the way for Bitcoin to decline.
Bitcoin's downward correction and its placement in the demand zone will allow us to buy it. It should be noted that there is a possibility of heavy fluctuations and shadows due to the movement of whales in the market and compliance with capital management in the cryptocurrency market will be more important.
Bullish signs are abundant in the cryptocurrency market, as investors observe various factors that favor this sector beyond Bitcoin. While some analysts predict 2025 as the year of altcoins, JPMorgan argues that Bitcoin will remain an attractive option.
Market experts point to cyclical trends that could boost altcoins such as Solana and Ripple. These two tokens experienced significant growth following Donald Trump’s election victory, driven by expectations of greater support from the new administration. However, JPMorgan highlights four reasons why investors should approach the altcoin market cautiously.
First, future policies remain speculative, with uncertainty surrounding their timing and impact. Although reduced regulatory oversight may improve sentiment across the industry, there is no guarantee that interest in decentralized finance will grow substantially.
JPMorgan noted that it is still unclear whether these new regulations will allow the crypto ecosystem to integrate into traditional financial systems or if public blockchains like Ethereum will play a central role in the future.
Additionally, the bank stated that ambitious plans for crypto reserves in the United States and beyond are likely to focus solely on Bitcoin. Certain U.S. states have already proposed legislation to hold Bitcoin as a hedge against inflation, a policy Washington might adopt during Trump’s second term.
Second, Bitcoin continues to dominate the cryptocurrency fund space. JPMorgan predicts that retail and institutional investors will keep investing in Bitcoin spot ETFs, supported by Bitcoin’s appeal as digital gold. According to a Bernstein report, Bitcoin is expected to replace gold as the primary store of value in the global economy over the next decade.
Bitcoin accounted for 35% of the total $78 billion inflows into the crypto market in 2024, according to JPMorgan. By contrast, Ethereum spot ETFs, launched in July 2024, attracted only $2.4 billion. The bank also forecasts that future ETFs for altcoins like Solana may see limited capital inflows.
Third, the Bitcoin network is evolving to rival tokens with more specific use cases, such as Ethereum. Historically, Bitcoin was perceived as a buy-and-hold asset with limited functionality. However, developers have been expanding its capabilities, and new smart contract features will help it compete with rivals.
JPMorgan also stated that large institutions might overlook public blockchains like Ethereum in favor of private blockchains offering customized solutions for institutional investors.
Fourth, new altcoin projects require time to mature and prove their utility. The bank explained that decentralized initiatives often attract initial user attention but then face declining activity and token value. To achieve sustainability, these projects must demonstrate their long-term functional benefits.
JPMorgan cautioned investors against expecting a repeat of the 2021 crypto bull market. During that period, projects succeeded through token distribution, but the current industry is more focused on blockchain capability development.
The bank further noted that MicroStrategy is still halfway through its plan to invest $42 billion in Bitcoin. This software company has made a name for itself by accumulating vast Bitcoin reserves through equity and debt financing.
For the first time in history, over 20% of total spot trading volume is conducted on decentralized exchanges (DEXs).
Standard Chartered Bank warned that if the $90,000 support level breaks, Bitcoin could drop to around $80,000. The bank highlighted that Bitcoin ETF purchases have stabilized since the U.S. presidential election, and Jerome Powell’s policy shifts at the Federal Reserve on December 18 have increased selling pressure on digital assets.
The bank cautioned that widespread panic could amplify these sell-offs, potentially affecting other cryptocurrencies.Nevertheless, such a price drop could present a long-term accumulation opportunity.
Bitcoin's downward correction and its placement in the demand zone will allow us to buy it. It should be noted that there is a possibility of heavy fluctuations and shadows due to the movement of whales in the market and compliance with capital management in the cryptocurrency market will be more important.
Bullish signs are abundant in the cryptocurrency market, as investors observe various factors that favor this sector beyond Bitcoin. While some analysts predict 2025 as the year of altcoins, JPMorgan argues that Bitcoin will remain an attractive option.
Market experts point to cyclical trends that could boost altcoins such as Solana and Ripple. These two tokens experienced significant growth following Donald Trump’s election victory, driven by expectations of greater support from the new administration. However, JPMorgan highlights four reasons why investors should approach the altcoin market cautiously.
First, future policies remain speculative, with uncertainty surrounding their timing and impact. Although reduced regulatory oversight may improve sentiment across the industry, there is no guarantee that interest in decentralized finance will grow substantially.
JPMorgan noted that it is still unclear whether these new regulations will allow the crypto ecosystem to integrate into traditional financial systems or if public blockchains like Ethereum will play a central role in the future.
Additionally, the bank stated that ambitious plans for crypto reserves in the United States and beyond are likely to focus solely on Bitcoin. Certain U.S. states have already proposed legislation to hold Bitcoin as a hedge against inflation, a policy Washington might adopt during Trump’s second term.
Second, Bitcoin continues to dominate the cryptocurrency fund space. JPMorgan predicts that retail and institutional investors will keep investing in Bitcoin spot ETFs, supported by Bitcoin’s appeal as digital gold. According to a Bernstein report, Bitcoin is expected to replace gold as the primary store of value in the global economy over the next decade.
Bitcoin accounted for 35% of the total $78 billion inflows into the crypto market in 2024, according to JPMorgan. By contrast, Ethereum spot ETFs, launched in July 2024, attracted only $2.4 billion. The bank also forecasts that future ETFs for altcoins like Solana may see limited capital inflows.
Third, the Bitcoin network is evolving to rival tokens with more specific use cases, such as Ethereum. Historically, Bitcoin was perceived as a buy-and-hold asset with limited functionality. However, developers have been expanding its capabilities, and new smart contract features will help it compete with rivals.
JPMorgan also stated that large institutions might overlook public blockchains like Ethereum in favor of private blockchains offering customized solutions for institutional investors.
Fourth, new altcoin projects require time to mature and prove their utility. The bank explained that decentralized initiatives often attract initial user attention but then face declining activity and token value. To achieve sustainability, these projects must demonstrate their long-term functional benefits.
JPMorgan cautioned investors against expecting a repeat of the 2021 crypto bull market. During that period, projects succeeded through token distribution, but the current industry is more focused on blockchain capability development.
The bank further noted that MicroStrategy is still halfway through its plan to invest $42 billion in Bitcoin. This software company has made a name for itself by accumulating vast Bitcoin reserves through equity and debt financing.
For the first time in history, over 20% of total spot trading volume is conducted on decentralized exchanges (DEXs).
Standard Chartered Bank warned that if the $90,000 support level breaks, Bitcoin could drop to around $80,000. The bank highlighted that Bitcoin ETF purchases have stabilized since the U.S. presidential election, and Jerome Powell’s policy shifts at the Federal Reserve on December 18 have increased selling pressure on digital assets.
The bank cautioned that widespread panic could amplify these sell-offs, potentially affecting other cryptocurrencies.Nevertheless, such a price drop could present a long-term accumulation opportunity.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.