JPMorgan says crypto rally still possible despite market downturn

JPMorgan has stated that it is premature to declare a crypto winter and that the potential for a price increase remains, Decrypt reported, citing a note from the bank. The report noted that BTC closed November down 9% from January, marking the first time since May 2023 that the cryptocurrency has posted a year-over-year decline. JPMorgan explained that crypto prices were temporarily inflated following President Donald Trump's re-election, with the total crypto market capitalization subsequently falling by over 20% and significantly impacting trading volumes. However, the bank highlighted that total stablecoin trading volume has increased for 17 consecutive months. JPMorgan concluded that the current market downturn does not necessarily indicate a structural deterioration of the crypto ecosystem and maintains a positive outlook. The report comes as JPMorgan CEO Jamie Dimon, once a vocal critic of crypto, has recently shifted his stance, acknowledging cryptocurrencies and blockchain as key future technologies in media interviews.