JPMorgan analysts are optimistic about the cryptocurrency market in their latest report, despite significant market pullbacks. The analysts believe that the inflow of institutional investor funds and regulatory clarity will support the next round of increases in the digital asset market.

The report notes that the production cost of Bitcoin has fallen to around $77,000, although the current trading price is approximately $66,300, below this level, but the bank believes this dynamic will ultimately self-correct.

Meanwhile, Bitcoin's attractiveness relative to gold has increased, as gold has recently outperformed Bitcoin, but its volatility has significantly increased. JPMorgan expects that further U.S. crypto legislation (such as the Clarity Act) will provide the necessary clarity for institutional participation, thereby driving market recovery.