JPMorgan Maintains Bullish Crypto Outlook: Institutional Inflows Expected to Drive 2026 Recovery

JPMorgan analysts maintain a bullish outlook on cryptocurrencies for the remainder of 2026, citing institutional inflows and regulatory progress as key drivers of a potential recovery. The bank, led by Nikolaos Panigirtzoglou, expects a shift in capital rotation toward digital assets, with institutional investors leading the flow rather than retail traders. Bitcoin traded around $66,300 at press time, down from its production cost estimate of $77,000 as of the report, with the bank estimating BTC’s production cost at roughly $77,000. While BTC briefly dipped below breakeven levels, volatility remains high. Gold has outperformed BTC since October with rising volatility, making BTC relatively more attractive versus gold on a long-term basis. Regulatory clarity, including potential passage of the Clarity Act, is seen as supportive of a rebound in 2026.