JPMorgan Archives

3rd July 2025

JPMorgan Sees Stablecoin Market Hitting $500B by 2028, Far Below Bullish Forecasts

The stablecoin market is poised to grow to $500 billion by 2028, according to JPMorgan (JPM) strategists, a projection that falls well short of some of the more exuberant forecasts calling for a $1 trillion to $2 trillion market cap within the same timeframe, the Wall Street bank said in a research report on Thursday.

In the note led by strategist Nikolaos Panigirtzoglou, the bank outlined a more tempered view of the sector's trajectory, arguing that crypto-native demand, not broader payment adoption, remains the primary driver of stablecoin usage.

“We find forecasts for an exponential expansion of the stablecoin universe rom $250 billion currently to $1 trillion-$2 trillion over the coming years as far too optimistic,” the team wrote.

Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing among other things a payment infrastructure, and are also used to transfer money internationally.

According to the bank's analysts, roughly 88% of stablecoin demand today comes from crypto-native activity, including trading, decentralized finance (DeFi) collateral, and idle funds held by crypto firms, with payments accounting for just 6%.

Even under generous assumptions, the growth of stablecoin use in payments would only marginally increase overall market size, the report said.

JPMorgan also dismissed the likelihood of a large-scale shift from traditional bank deposits or money market funds into stablecoins, citing the lack of yield and added friction in moving between fiat and crypto.

The firm's analysts pushed back on comparisons with China’s e-CNY or the rise of Alipay and WeChat Pay, noting that these systems are centralized and not representative of how stablecoins operate.

Ultimately, the bank sees moderate, crypto-driven growth as the most realistic path for stablecoins, not a mass adoption story.

Some banks are more bullish than JPMorgan about the outlook for stablecoins.

The Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act is expected to be passed in the U.S. in the coming months, and that could trigger an almost 10-fold jump in stablecoin supply, investment bank Standard Chartered said in a research report in April.

U.S. legislation “would further legitimize the stablecoin industry,” the bank's analysts wrote at the time, adding that “we estimate this would cause total stablecoin supply to rise from $230 billion today to $2 trillion by year-end 2028.”

1st July 2025

Bitcoin Network Hashrate Declined in June as Miners Reacted to Recent Heatwave: JPMorgan

The Bitcoin (BTC) network monthly average hashrate fell about 3% in June, Wall Street bank JPMorgan (JPM) said in a research report Tuesday.

The hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain, and is a proxy for competition in the industry and mining difficulty. It is measured in exahashes per second (EH/s).

“Our sense is the decline was driven by seasonal weather-related curtailment in the U.S., and note that Cipher, IREN and Riot alone operate >80 EH/s in Texas,” analysts Reginald Smith and Charles Pearce wrote.

Bitcoin mining profitability continues to improve. The bank's analysts estimated that miners earned an average of $55,300 per EH/s in daily block reward revenue last month, a 7% increase from April.

Daily block reward gross profit rose 13% month-on-month to the highest level since January, the analysts noted.

The total market cap of the 13 U.S.-listed bitcoin miners the bank follows rose 23%, or around $5.3 billion, from the previous month, the report said.

Operators with high-performance computing (HPC) exposure outperformed pure-play miners due to speculation of a deal between Core Scientific (CORZ) and CoreWeave (CRWV).

IREN (IREN) outperformed the group with a 67% gain, while Bitfarms (BITF) was the worst performer with a 19% decline, the report added.

30th June 2025

Circle Valuation Is ‘Outside Our Comfort Zone,’ Initiate at Underweight: JPMorgan

Wall Street heavyweight JPMorgan (JPM) initiated coverage of stablecoin issuer Circle (CRCL) with an underweight rating and an underwhelming $80 price target.

The shares were trading 4.5% higher at around $189 at publication time.

Circle is well positioned, the bank said, and its USDC stablecoin has an “early-mover advantage,” with growing use cases in payments.

“We think highly of the Circle management team and are confident in the outlook for outsized stablecoin and USDC growth,” analysts led by Kenneth Worthington wrote.

Still, the analysts see the company's market capitalization as elevated, and initiated coverage with an underweight rating. The stock priced at $31 a share in its initial public offering (IPO), and hit a record high of $299 last Monday.

Other Wall Street analysts were not as bearish. Broker Bernstein initiated coverage with an outperform rating and a $230 price target, saying Circle was an “investor must-hold.”

“CRCL is building a market-leading digital dollar stablecoin network, with a strong regulatory edge, liquidity headstart and marquee distribution partnerships,” analysts led by Gautam Chhugani wrote.

Bernstein is also bullish about the wider stablecoin market, and expects total market cap to reach around $4 trillion in the next decade from $225 billion today.

Rival broker Canaccord Genuity started coverage of Circle with a buy rating and a $247 price target.

The firm's analysts view the issuer of USDC as “having many of the key attributes that could make it a long-term winner in this potentially very large and new market for truly digital money.”

16th June 2025

U.S.-Listed Bitcoin Miners’ Share of Network Hashrate Hit Record High in June: JPMorgan

The total hashrate of the 13 U.S.-listed bitcoin BTC miners tracked by JPMorgan (JPM) now accounts for around 31.5% of the global network, the highest level on record, the bank said in a research report on Monday.

These miners added 11 exahashes per second (EH/s) of capacity since April, led by CleanSpark (CLSK), Hive Technologies (HIVE) and Riot Platforms (RIOT), the report said.

The network hashrate fell about 10 EH/s to an average of 890 EH/s in the first two weeks of June, a development the bank said was “somewhat surprising.” Still, it remains up over 50% year-on-year.

The hash price, a measure of daily mining profitability, dropped 2% from the end of May, the report noted.

The total market cap of the 13 companies rose 10%, or $2.4 billion, in the first two weeks of the month, the bank said.

Riot outperformed the group with a 20% gain, while Bitfarms (BITFU) underperformed with a 9% decline, the report added.

13th June 2025

Positive U.S. Regulatory Environment More Conducive for Crypto Corporate Activity: JPMorgan

Expectations of a more benign regulatory environment in the U.S. is leading to an increase in the number of crypto companies looking to go public and an uplift in venture capital (VC) funding, investment bank JPMorgan (JPM) said in a research report Wednesday.

The GENIUS Act's progress in the Senate has become a “key factor in anticipating a clearer and more supportive regulatory environment,” analysts led by Nikolaos Panigirtzoglou wrote.

“The anticipation of such a U.S. regulatory environment is conducive to crypto corporate activity such as IPOs and VC funding,” the authors wrote.

The Senate's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act mandates federal regulation for stablecoins with a market cap of over $10 billion with the potential for state regulation if it aligns with federal rules.

Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets and are also used to transfer money internationally.

The bank noted that the number of crypto IPOs so far this year matches the pace of offerings seen in the bull market of 2021.

Press reports suggest that more crypto companies, including Ripple, Kraken, Consenys and CoinDesk's owner Bullish are getting ready to IPO this year, the report said.

Venture capital funding is also on the rise, and has exceeded levels seen in 2023/24, on an annualized basis, the bank said.

IPOs give crypto investors a way to diversify their digital asset exposure beyond just bitcoin BTC and ether ETH, the two largest cryptocurrencies by market cap. It means they can take advantage of opportunities in areas such as blockchain infrastructure, payments and settlement, custody and tokenization, the report added.

13th June 2025

Bitcoin Miners Just Had One of Their Best Quarters on Record, JPMorgan Says

The first quarter of 2025 was one of the best periods on record for U.S.-listed bitcoin BTC mining companies, Wall Street bank JPMorgan (JPM) said in a research report Friday.

“Four of the five operators in our coverage reported record revenue and profits,” analysts Reginald Smith and Charles Pearce wrote.

In aggregate, the miners earned gross profit of about $2.0 billion with gross margins of 53%. Those figures compare with $1.7 billion and 50% in the previous quarter, the bank said.

MARA Holdings (MARA) mined the most bitcoin in the bank's coverage universe for the ninth quarter in a row, the report said.

IREN (IREN) earned the most gross profit of the group for the first time, the bank noted. The miner also recorded the “lowest all-in cash cost per coin at just ~$36,400.”

Conversely, MARA posted the highest cost per coin of around $72,600, the bank said.

The five mining companies that the bank tracks issued only $310 million of equity in the quarter, a drop of $1 billion from the fourth quarter last year. CleanSpark (CLSK) did not raise any equity in the period, the bank noted.

The bank estimated the companies spent $1.8 billion in total on power, $50 million more than in the previous quarter.

The bank has an overweight rating on CleanSpark, IREN and Riot Platforms (RIOT), and a neutral rating for Cipher Mining (CIFR) and MARA.

13th June 2025

Bitcoin Miner Price Targets Raised to Reflect Improved Industry Economics: JPMorgan

JPMorgan (JPM) raised its price targets for a number of bitcoin BTC mining companies to reflect first-quarter results and changes to the bitcoin price and the network hashrate, the bank said in a report Friday.

The bank lifted its CleanSpark (CLSK) price target to $14 from $12, its Riot Platforms (RIOT) objective to $14 from $13 and its MARA Holdings (MARA) target to $19 from $18.

“Our price targets generally increased due to higher bitcoin prices and improving mining profitability,” analysts Reginald Smith and Charles Pearce wrote.

JPMorgan said it tweaked the price targets to reflect a 24% increase in the bank's spot bitcoin assumption and a 9% increase to its network hashrate estimate.

JPMorgan reiterated its overweight rating on CleanSpark, IREN (IREN) and Riot, and its neutral rating for Cipher Mining (CIFR) and MARA.

4th June 2025

JPMorgan to Accept Bitcoin ETFs as Loan Collateral in Expansion of Crypto Access: Bloomberg

JPMorgan Chase (JPM) plans to let trading and wealth-management clients use certain crypto-linked assets, including spot bitcoin exchange-traded funds (ETFs), as collateral for loans.

Starting in the coming weeks, the bank will offer financing backed by shares of BlackRock’s iShares Bitcoin Trust (IBIT), Bloomberg reported Wednesday, citing people familiar. For some clients, JPMorgan will also factor crypto holdings into assessments of net worth and liquidity — putting them on par with traditional securities like stocks.

The shift comes just weeks after CEO Jamie Dimon said the bank would soon allow clients to buy bitcoin BTC, marking a notable turnaround from his prior hard stance against digital assets. Dimon has long criticized cryptocurrencies, particularly for their use in illegal activities like sex trafficking and money laundering.

Despite those concerns, JPMorgan’s pivot highlights the growing institutional pressure to accommodate crypto as its footprint in traditional finance deepens. Wealth management firms are seeing a wave of client demand for exposure to digital assets. The public listing of crypto firms on U.S. stock exchanges, combined with rising interest from investors ahead of long-sought regulatory clarity, has made it harder for banks to ignore the space.

There’s also political pressure. With U.S. President Donald Trump back in office, federal agencies are widely expected to ease off crypto regulation. That puts banks that have historically been wary of the asset class in a tough spot. Blocking access to crypto could now look like discrimination, not caution.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

2nd June 2025

Bitcoin Mining Profitability Improved in May, JPMorgan Says

The total market cap of the 13 U.S.-listed miners that JPMorgan tracks rose almost 20% in May, as bitcoin BTC rallied and mining profitability increased, the bank said in a research report Monday.

The Bitcoin network hashrate rose about 25 exahashes per second (EH/s) to an average of 897 EH/s last month, according to the report.

Mining profitability improved in May. The bank estimated that “bitcoin miners earned an average of $51,600 per EH/s in daily block reward revenue in May, up 16% from April,” analysts Reginald Smith and Charles Pearce wrote.

Daily block reward gross profit also increased substantially, jumping 36% month-on-month to $27,900 per EH/s, the bank noted.

IREN (IREN) outperformed the group with a 37% rise, and Bitfarms (BITF) underperformed with an 8% decline, JPMorgan said.

Seven of the thirteen bitcoin mining companies that the bank tracks outperformed bitcoin last month, the report added.

2nd June 2025

Bitcoin Mining Profitability Improved in May, JPMorgan Says

The total market cap of the 13 U.S.-listed miners that JPMorgan tracks rose almost 20% in May, as bitcoin BTC rallied and mining profitability increased, the bank said in a research report Monday.

The Bitcoin network hashrate rose about 25 exahashes per second (EH/s) to an average of 897 EH/s last month, according to the report.

Daily block reward gross profit also increased substantially, jumping 36% month-on-month to $27,900 per EH/s, the bank noted.

IREN (IREN) outperformed the group with a 37% rise, and Bitfarms (BITF) underperformed with an 8% decline, JPMorgan said.

Seven of the thirteen bitcoin mining companies that the bank tracks outperformed bitcoin last month, the report added.

30th May 2025

Spot Bitcoin ETFs Broke 10-Day Inflow Streak With $358M of Outflows Thursday: JPMorgan

U.S.-listed spot bitcoin BTC exchange-traded funds (ETFs) recorded their first day of net outflows in 10 trading sessions on Thursday, according to a research report by JPMorgan (JPM).

The Wall Street bank estimated that spot bitcoin ETFs saw $358 million of redemptions yesterday, according to a Friday report, with just one, BlackRock’s iShares Bitcoin Trust (IBIT) attracting a net inflow. IBIT gathered in a net $125 million, the bank observed.

In contrast, Fidelity’s FBTC saw net outflows of $166 million, leading the redemptions, the report said. Other major contributors included the Grayscale Bitcoin Trust (GBTC) -$107 million, ARK 21Shares Bitcoin ETF (ARKB) -$89 million and the Bitwise Bitcoin ETF (BITB) -$71 million, the bank said

JPMorgan said smaller outflows were also noted across the remaining issuers.

The bitcoin price slipped 1.1% on the day, but market activity remained robust with trading volumes of $5.39 billion, well above the 20-day average of $2.81 billion, the report added.

The world's largest cryptocurrency was trading around $105,656 at publication time.

30th May 2025

Ethereum Upgrades Have Failed to Boost Network Activity in Meaningful Way: JPMorgan

The Ethereum blockchain has yet to see a significant increase in activity despite successive upgrades, investment bank JPMorgan (JPM) said in a research report.

“Neither the number of daily transactions nor the number of active addresses saw a material increase post recent upgrades,” analysts led by Nikolaos Panigirtzoglou wrote in the Wednesday report.

Still, total value locked (TVL) on Ethereum increased between the Dencun upgrade in March 2024 and Pectra earlier this month, the bank noted, possibly due to increased lending and borrowing on decentralized exchanges (DEXs), but the increase looks lower in dollar terms than in the blockchain's ether ETH token.

Ethereum activated the Pectra upgrade on May 7. The update aims to streamline staking, enhance wallet functionality and improve overall efficiency.

Pectra makes the ETH token and Ethereum itself more appealing to institutions, the bank said. It distinguishes the network from competitors, but the upgrades haven't boosted activity in a meaningful way.

The bank noted that following the Dencun upgrade, both average and total fees fell, in part because of a shift toward layer 2 chains.

Ether's circulating supply also increased after Dencun, which raised concerns about the crypto “becoming an inflationary asset amid subdued transaction activity,” JPMorgan said.

Futures positioning suggests that institutions played a large role in the recent rally in ether, the report added. Ether has risen more than 45% in the past month, CoinDesk data show.

29th May 2025

U.S. Spot Crypto ETFs Saw Strong Inflows on Wednesday, JPMorgan Says

U.S.-listed spot crypto exchange-traded funds (ETFs) saw strong net inflows Wednesday, with both ether ETH and bitcoin BTC products continuing to draw investor interest despite declines in underlying asset prices, investment bank JPMorgan (JPM) said.

U.S. spot ether ETFs logged an estimated $84 million in net inflows on May 28, as investor interest held firm even with ether falling 1.3%, the bank said in a report published on Thursday.

Leading the pack was BlackRock’s iShares Ethereum Trust (ETHA), which brought in $52 million, followed by Fidelity’s Ethereum Fund (FETH) with $26 million. Grayscale’s mini ETH Trust and Invesco/Galaxy’s QETH added $5 million and $2 million, respectively, the bank noted.

Notably, ether ETFs recorded a notional trading volume of $459 million, well above their post-launch daily average of approximately $375 million since debuting in July 2024, the bank observed.

Meanwhile, spot bitcoin ETFs brought in an estimated $431 million in net inflows, JPMorgan said, largely powered by BlackRock’s iShares Bitcoin Trust (IBIT), which alone saw $479 million in new investment.

The strong inflow was partially offset by redemptions from ARK 21Shares Bitcoin ETF (ARKB), the bank noted, which shed $34 million, and Fidelity’s FBTC, which recorded $14 million in outflows.

Despite bitcoin's 2.1% drop in price, total trading volumes remained elevated, clocking in at $3.5 billion, compared to the group’s historical average of $2.8 billion per day since launching in January 2024, the report added.

Investors are moving from gold to bitcoin ETFs, according to a Thursday report by Bloomberg. U.S. bitcoin ETFs have seen $9 billion in inflows over the last 5 weeks versus $2.8 billion in outflows for gold-backed funds.

19th May 2025

Bitcoin Network Hashrate Rose Slightly in First Two Weeks of May: JPMorgan

The Bitcoin network hashrate rose 2% in the first two weeks of May to an average of 885 exahashes per second (EH/s), Wall Street bank JPMorgan (JPM) said in a research report Friday.

Miner profitability improved in May, as the price of bitcoin BTC rose, and gross margins expanded, the bank said.

The hashprice, a measure of daily mining profitability, rose 13% from April, which the bank said was “encouraging.”

“We estimate miners earned ~$50,100 in daily block reward revenue per EH/s over the first two weeks of the month, up 13% from last month and 3% y/y,” analysts Reginald Smith and Charles Pearce wrote.

U.S.-listed miners maintained their share of the network hashrate, and currently account for about 30.5% of the network, a 1.1% increase from April, the bank said.

The total market cap of the 13 U.S.-listed bitcoin mining stocks that the bank tracks rose 24%, or $4.6 billion, this month.

Bitdeer (BTDR) outperformed with a 43% gain, while Greenidge (GREE) underperformed the sector with a 5% decline, the report said.

1st May 2025

Bitcoin Miners With HPC Exposure Underperformed BTC for Third Straight Month: JPMorgan

Bitcoin (BTC) mining companies with high-performance computing (HPC) exposure underperformed the world's largest cryptocurrency for the third month in a row in April, Wall Street bank JPMorgan said in a research report on Thursday.

Some bitcoin miners have pivoted into new business areas, such as offering HPC services to the fast growing artificial intelligence (AI) market, to reduce their dependence on crypto.

“We note miners with HPC exposure (IREN, RIOT, WULF, HUT) underperformed BTC performance for the third consecutive month,” analysts Reginald Smith and Charles Pearce wrote.

Mining profitability fell in April as the network hashrate increased.

Daily block reward revenue declined 6% from March, the bank said, while the monthly average hashrate rose around 56 exahashes per second (EH/s), or 6% month-on-month, to 872 EH/s in April.

“This was the second largest sequential increase in the monthly average network hashrate on record,” the authors wrote.

The total market cap of the 13 U.S.-listed mining stocks that the bank tracks increased 12% from March.

Greenidge (GREE) was a notable outperformer in April with a 46% gain.

16th April 2025

Bitcoin Miners With HPC Exposure Underperformed in First Two Weeks of April: JPMorgan

The performance of bitcoin (BTC) mining stocks was mixed in the first two weeks of April, with pure play operators outperforming those with exposure to high-performance computing (HPC), JPMorgan (JPM) said in a research report Wednesday.

Only MARA Holdings (MARA) and CleanSpark (CLSK) outperformed the largest cryptocurrency during the period, while miners with exposure to HPC, which is used in applications including AI, such as Bitdeer (BTDR), TeraWulf (WULF), IREN (IREN) and Riot Platforms (RIOT) underperformed.

The bank noted that March was a good month for the U.S.-listed miners. They added 15 exahashes per second of capacity, and mined more tokens. The first two weeks of April were not as positive.

“Network hashrate growth outpaced U.S. operator expansion, and average bitcoin price declined over the first half of April, which has pressured mining economics,” analysts Reginald Smith and Charles Pearce wrote.

The bank estimated that U.S.-listed miners are currently trading around 1.2 times their proportional share of the four-year block reward opportunity, which is the lowest level in more than 2 years.

Miners earned about $41,500 in daily block reward revenue per EH/s in the first two weeks of the month, a 12% decline from March, the report said.

The network hashrate has risen 85 EH/s month-to-date to an average of 900 EH/s, the bank noted. The hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain, and is a proxy for competition in the industry and mining difficulty.

The total market cap of the 13 U.S.-listed bitcoin miners that the bank tracks fell 2% to $16.9 billion in April.

1st April 2025

U.S.-Listed Bitcoin Miners Shed 25% of Their Market Cap in March: JPMorgan

The total market cap of the 14 U.S.-listed bitcoin (BTC) miners tracked by JPMorgan (JPM) dropped 25% in March, the third-worst monthly performance on record, the Wall Street bank said Tuesday.

Only one stock, Stronghold Digital Mining (SDIG), outperformed bitcoin (BTC) last month, the report noted. Miners with high performance computing (HPC) exposure underperformed pure-play miners for the second month in a row.

“We note valuations today are at the lowest levels relative to the block reward since the collapse of FTX in the Fall of 2023,” analysts Reginald Smith and Charles Pearce wrote.

The average network hashrate inched higher during the month to 816 exahashes per second (EH/s), the report said. The hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain, and is a proxy for competition in the industry and mining difficulty.

Mining revenue and profitability both fell.

“We estimate bitcoin miners earned an average of $47,300 per EH/s in daily block reward revenue in March, down 13% from February,” the bank said. Daily block reward gross profit dropped 22% month-on-month to $23,000 per EH/s.

Stronghold Digital outperformed the sector last month with a 2% decline. Cipher Mining (CIFR) underperformed with a 45% slump.

17th March 2025

Bitcoin Network Hashrate Inched Higher in March as Mining Economics Weakened: JPMorgan

The Bitcoin network hashrate rose 2 exashashes per second (EH/s) in the first two weeks of March, to an average of 811 EH/s, Wall Street bank JPMorgan (JPM) said in a research report Monday.

JPMorgan noted that U.S.-listed miners maintained their share of the network hashrate at around 30%.

The “average bitcoin price declined ~10%, pressuring mining economics in the period,” analysts Reginald Smith and Charles Pearce wrote.

The hashprice, a measure of daily mining profitability, was broadly unchanged from the end of last month, the report noted.

Miners earned roughly $48,300 in daily block reward revenue per EH/s in the first two weeks of March, a 11% drop from February, and a 52% decline since last April’s halving event, the bank said.

The total market cap of the 14 U.S.-listed miners that the bank tracks slipped 13%, or about $3 billion, from the month previous.

Argo Blockchain (ARGO) outperformed with a 1% gain, while Cipher Mining underperformed with a 25% decline. Only one of the miners in the bank’s coverage outperformed bitcoin in the same period, the report added.

Read more: Bitcoin Mining Economics Weakened in February: JPMorgan

13th March 2025

Bitcoin Miner IREN Upgraded to Overweight, Cipher Mining Cut to Neutral: JPMorgan

Wall Street bank JPMorgan (JPM) updated its bitcoin (BTC) miner price targets and estimates following fourth-quarter 2024 results and to account for changes in the bitcoin price and the network hashrate.

JPMorgan raised IREN (IREN), its top pick in the sector, to overweight from neutral, and cut its price target to $12 from $15. The shares were 2.7% higher at $7.23 in early trade.

Cipher Mining (CIFR) was downgraded to neutral from overweight, while the bank withdrew its $8 price target. The stock fell 3% to $3.10.

The bank reiterated its overweight ratings on Riot Platforms (RIOT) and CleanSpark (CLSK), and reduced their respective price targets to $13 and $12. Riot slipped 0.5% to $7.82. CleanSpark gained 0.6% to $8.15.

It reiterated its neutral rating on MARA Holdings (MARA), and cut the company’s price target to $18 from $23. The shares rose 0.5% to $13.14.

Miner’s price targets were slashed by 19%-29% to reflect a 10% reduction to the bank’s bitcoin price assumption and an 80% increase to the bank’s network hashrate growth estimate.

The total market cap of the five mining stocks that the bank covers has slumped more than 20% year-to-date versus a 11% decline in the bitcoin price, the report noted.

Mining stocks have come under pressure as high performance computing (HPC) deals have taken longer than expected to come to fruition, and mining economics have deteriorated, the bank said.

The pullback in these stocks offers an attractive entry point for investors, the report added.

7th March 2025

Crypto Market Is Skeptical About the Formation of a U.S. Strategic Reserve: JPMorgan

Cryptocurrency markets are likely to remain under pressure in the short term owing to a lack of positive catalysts and skepticism about whether Congress will approve a U.S. strategic crypto reserve, JPMorgan (JPM) said in a research report Wednesday.

“Not only is there skepticism about congressional approval for such a strategic crypto reserve, but also the feasibility of including smaller tokens outside bitcoin (BTC) and ether (ETH) given their high risk and volatility,” analysts led by Nikolaos Panigirtzoglou wrote.

On Thursday, President Donald Trump directed his administration to establish a Bitcoin Strategic Reserve to hold the assets that have been seized by the government. He also called for a stockpile of other crypto assets, without naming those that should be included despite mentioning XRP, solana (SOL) and cardano (ADA) earlier in the week.

JPMorgan noted that talks about bitcoin inclusion in strategic reserves at the state level have also failed to garner support.

States including Montana, North Dakota, South Dakota and Wyoming have all rejected such proposals due to “risk and volatility” concerns, the report said.

The world’s central banks are equally cautions about including the world’s largest cryptocurrency in their reserves.

The Swiss National Bank (SNB) and the National Bank of Poland have rejected adding bitcoin to their reserves, instead opting for more stable assets such as gold, JPMorgan noted.

Singapore also rejected the idea. “Cryptocurrencies do not align with [the bank’s] long-term investment strategies due to their speculative nature,” it said.

The European Central Bank (ECB) has criticized the idea of bitcoin as a reserve asset, and this is indicative of the wider skepticism amongst policy makers about using cryptos as reserve assets, the report added.