JPMorgan: Bitcoin's pullback is "meaningful but not bearish," the crypto winter has not arrived

JPMorgan analysts stated that despite a significant pullback in Bitcoin over the past month, the current market has not entered a "crypto winter," and the overall bull market cycle is still not over.

Analysts pointed out that Bitcoin fell to $81,000 last month, with a monthly performance 9% lower than the beginning of the year, marking the first year-on-year decline since May 2023. However, this pullback, while "meaningful," is not sufficient to represent a structural deterioration. As of Tuesday, Bitcoin's price was around $93,000, down about 1.5% from its peak. The team emphasized that the short-term emotional uplift of digital assets following the election, along with the subsequent decline of over 20% in market capitalization and weakening trading volume, is a normal adjustment. Structurally, the size of stablecoins has grown for 17 consecutive months, showing "significant resilience." JPMorgan believes that the traditional four-year cycle logic is weakening, and ETF investors are bringing a more stable funding structure to the market, making deep pullbacks of 80% increasingly unlikely. Standard Chartered Bank in the UK also stated in its research report that with expectations for a more accommodative Federal Reserve policy, "crypto winter may have become a thing of the past."