The leading cryptocurrency, Bitcoin (BTC), continues its downward trend. After a rapid recovery from $60,000 to $70,000, Bitcoin failed to maintain this rise and fell back to the $66,000 level.
While analyses suggesting Bitcoin is in a bear market are increasing, JPMorgan has issued a bullish forecast for 2026.
According to Coindesk, JPMorgan stated that stronger fundamental indicators and increased institutional investment could boost cryptocurrencies in 2026, following Bitcoin’s estimated cost of production falling below its target.
The banking giant expressed optimism for the cryptocurrency market in 2026, stating that institutional entry and clearer regulation would be key drivers of recovery.
Analysts led by Nikolaos Panigirtzoglou stated that Bitcoin is approaching a new equilibrium after falling below its estimated production cost of $77,000, and that the capitulation of miners is helping the market correct itself in the medium to long term.
“We are optimistic about the crypto markets in 2026 as we expect further growth in cryptocurrency flows, but we anticipate this growth will be largely driven by institutional investors.”
According to analysts, despite the sharp decline, volatility remains high, and institutional interest is stronger than that of individual investors. This creates a potential recovery if capital rotation resumes towards cryptocurrencies.
JPMorgan now expects institutional investors to play a significant role in the cryptocurrency boom of 2026, as the US advances its work on further cryptocurrency regulation, including the Clarity Act.
*This is not investment advice.
