Bitcoin's Recent Performance
Bitcoin (BTC) has experienced a decline of nearly 5% over the past year, with particularly significant downward pressure observed in October and November.
Since October 10, BTC has traded within a range of $93,000 to $82,000, reflecting prevailing uncertainty across the broader digital asset market.
Despite these recent fluctuations, JPMorgan analysts suggested on December 9 that Bitcoin and other digital assets may still have potential for further upside, even in the wake of renewed fears following last month's sell-off.
Bitcoin Bull Cycle Intact, According to JPMorgan
The November sell-off significantly tested the patience of Bitcoin traders. The month commenced with Bitcoin trading around $109,000. Subsequently, it entered a downward trend, experiencing brief recoveries before further declines.
On November 21, the price fell to approximately $82,000, marking its lowest point in seven months.
Some market observers have cautioned that Bitcoin's recent drop could signal the beginning of an extended downturn.
JPMorgan, however, holds a differing view, stating that the recent volatility does not indicate an impending "crypto winter."
The sell-off this past month triggered worries throughout crypto media and markets that the crypto ecosystem may be entering the next crypto winter.
While we don't anticipate the end of the current bull cycle, we do acknowledge this November pullback as meaningful.
The bank noted that Bitcoin concluded November approximately 9% below its starting level for January, representing its first year-over-year decline since May 2023.
JPMorgan also observed that digital asset prices experienced an inflation immediately following the 2024 U.S. general election. This coincided with President Donald Trump's return to office, which they suggest contributed to stretched valuations.
JPMorgan's Long-Term Bitcoin Outlook
In a research note issued in late November, JPMorgan outlined a long-term price target of $240,000 for Bitcoin.
The bank attributed this projection to its evolving market structure and increasing sensitivity to macroeconomic conditions. They argued that Bitcoin's performance is no longer primarily dictated by its four-year halving cycle, a pattern historically linked to significant bull markets.
At the time of writing, Bitcoin was trading at $92,337.33, down 2.2%, according to CoinGecko.