Despite the negative market trends since the beginning of the year, JPMorgan maintains a positive outlook on digital assets, according to CoinDesk.
The bank expects that the influx of institutional capital and the emergence of clear regulations will be the main drivers of the industry's recovery.
"We are optimistic about the prospects for 2026 and anticipate an increase in capital inflows into digital assets, primarily driven by institutional investors," the report from analysts led by Nikolaos Panigirtzoglou states.
Correction as an Opportunity
JPMorgan experts remain optimistic despite Bitcoin's price dropping below the mining breakeven point. Historically, this level has acted as a "soft" support for prices.
At the time of writing, the leading cryptocurrency is trading around $67,390. Analysts estimate the current cost of mining one coin to be approximately $77,000.
The short-term price drop below the breakeven threshold has pressured market sentiment and led to a decrease in on-chain activity.
If the price remains below this level for an extended period, less efficient miners may be forced to shut down their equipment. This would reduce network difficulty and overall production costs. JPMorgan describes this process as a self-regulating mechanism of the market.
Institutional vs Retail Investors
Despite the downturn, volatility remains high. However, interest from institutional investors has proven to be more resilient than that of retail traders. Analysts believe this creates a foundation for a rebound as capital rotates back into digital assets.
Bitcoin vs Gold
The relative investment appeal of Bitcoin has increased. Although gold has significantly outperformed Bitcoin in returns since October, the volatility of the precious metal has surged.
This combination makes Bitcoin a more attractive long-term investment, according to the report.
Below is the trend of the CBOE Gold Volatility Index — an index that measures market expectations for fluctuations in the price of the precious metal over the next 30 days.
Trend of the CBOE Gold Volatility Index. Source: Yahoo Finance.
2026 Forecast
JPMorgan anticipates a recovery in capital inflows into digital assets by 2026. The primary growth driver will be institutional investors, rather than retail players or corporate treasuries.
Additional support for this trend will come from progress in U.S. regulation, including the potential passage of new bills like the Clarity Act.
Notably, JPMorgan analysts have expressed confidence that Bitcoin could reach $266,000 in the long term, stating that the asset is becoming "more attractive than gold."