JPMorgan bullish on digital assets and cryptocurrency by 2025

- JP Morgan Forecasts Positive Outlook for Cryptocurrency by 2025 - Trump's Re-Election Could Reduce Regulations and Highlight Bitcoin as a Store of Value [Unblock Media] Analysts at JP Morgan have presented a positive outlook for the cryptocurrency market through 2025. JPMorgan sees changes in the U.S. political landscape as a key factor impacting the cryptocurrency market. They highlight the potential for Bitcoin to rise significantly if Donald Trump is re-elected as President of the United States. The anticipated favorable regulatory policies under a second Trump administration are seen as a key driver. Specifically, Trump is expected to introduce tax breaks for cryptocurrency trading and support for innovative blockchain projects. These policies could include relaxed anti-money laundering regulations and tax deductions for certain digital asset acquisitions. If Trump is re-elected and tensions with Iran escalate, investors might move their funds into assets like Bitcoin. This could underline Bitcoin's role as a store of value during economic uncertainty. Geopolitical conflicts and economic instability often drive people toward safer assets. There have been past instances, such as rising tensions between Israel and Iran, where Bitcoin prices dropped sharply. Another important factor contributing to the positive outlook is the strengthening support for cryptocurrencies from traditional financial institutions. Besides JP Morgan, Morgan Stanley is considering recommending Bitcoin exchange-traded funds (ETFs) to its clients, and Goldman Sachs is contemplating launching crypto-related funds. These developments will enhance the credibility of the cryptocurrency market and encourage institutional investors to enter the market. Additionally, JP Morgan analysts pointed out that the bankruptcies of Mt. Gox and Genesis, as well as the liquidation related to the German government's Bitcoin sales, have been resolved. This helps reduce market uncertainty and presents new buying opportunities, which is a positive sign. The completion of these liquidation processes has increased market liquidity and reduced price volatility. Bitcoin's volatility is historically well-known. In December 2017, Bitcoin's price surged to $19,000 but plummeted to below $6,000 in early 2018. In just the past week, Bitcoin has experienced significant volatility. Early last week, external factors like geopolitical conflicts caused Bitcoin to drop from $65,500 to $60,000. However, positive U.S. economic indicators helped Bitcoin recover to around $62,000. Midweek, Bitcoin's price increased again to the mid-$64,000 range and is now nearing $68,000. Overall, Bitcoin has seen a rise of over 4% this week. This price fluctuation reflects the extreme volatility that Bitcoin has demonstrated in the past, highlighting the need for investors to approach the market with caution. At the same time, JP Morgan remains optimistic about the long-term growth potential of the cryptocurrency market despite this volatility, emphasizing the increasing institutional support and growing participation from traditional financial entities, even in the face of regulatory uncertainties.