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[Blockchain Today Correspondent Lee Ji-eun] JP Morgan analysts say the bitcoin and cryptocurrency markets are at the beginning of a healing process.
According to a Cointelegraph report, strategists at J.P. Morgan said that the weekend Bitcoin price jump from $30,000 to $34,000 reinforced short-term uncertainty as they believe the cryptocurrency market is still unhealthy.
Based on on-chain data, the JPMorgan Chase team said on the 25th (local time) that the short-term outlook for Bitcoin still looks difficult. “It seems that the market is still overflowing with many difficulties to sort out,” said a strategist at JPMorgan.
JP Morgan cited the stability of the Bitcoin futures market and the possibility of increased production costs due to the migration of miners to China as positive factors. Several analyzes have shown that Bitcoin’s production cost continues to be price-related. Therefore, an increase in the price of mining costs can have a synergistic effect on the price of Bitcoin.
It seems that the cryptocurrency market is entering a recovery phase, but it is not yet in a healthy state. Fundstrat’s David Grider needs to find ways to reduce risk or insure himself, Bloomberg said.
The $30,000 rise, the benchmark for a significant rebound, came after JPMorgan’s comments. Bitcoin’s price surged to $30,070 and then quickly recovered to $33,445 over the weekend, according to data from Coin Telegraph Market Pro and TradingView.
After a positive reaction to the cryptocurrency of Mexico’s third-largest rich, Ricardo Salinas Fliego, who selected Bitcoin as the new gold last weekend, its price crossed $35,000 on the 28th.