Bitcoin has been on a recovery lately, but the sharp decline in October and November has re-emerged talk of a bear market and crypto winter.
Although some analysts have suggested that a bear market may begin and the decline may continue, the prevailing view in the market is that the bull market will continue.
The latest evaluation comes from JP Morgan, a major US bank.
JPMorgan said it is too early to declare a crypto winter and that a rally in cryptocurrencies is still possible despite the recent market downturn.
Analysts noted that the potential for a rally in Bitcoin and cryptocurrencies remains, saying the correction is short-lived and a crypto winter is unlikely.
“Bitcoin’s fall to $81,000 last month raised concerns, but this correction is not a harbinger of a long-term recession, just a significant decline.”
According to the report, Bitcoin's closing price in November was down 9% compared to January, meaning BTC recorded a negative annual return for the first time since May 2023.
JPMorgan also added that the correction was further exacerbated by the sharp rise in crypto prices immediately after President Donald Trump's re-election.
However, according to the bank, stablecoin trading volume has increased for 17 consecutive months, showing that the market fundamentals remain strong, even though the market capitalization of cryptocurrencies has declined by more than 20% and trading volumes have slowed.
JPMorgan maintained its positive outlook on the market, concluding that the recent correction does not signal a structural collapse.
JP Morgan is not alone in making this prediction. Other major institutions have expressed similar views. Jeffrey Kendrick, head of digital assets at Standard Chartered, also said the current cycle is different from past ones, suggesting that the crypto winter could be a thing of the past.
*This is not investment advice.
