Headline: JPMorgan Sees Bitcoin Correction as a Long-Term Investment Opportunity Amidst Market Turbulence Translation: JPMorgan Sees Bitcoin Correction as a Long-Term Investment Opportunity Amidst Market Turbulence

Despite the downward trend in the market since the beginning of the year, JPMorgan maintains an optimistic outlook on digital assets, reports CoinDesk.

The bank anticipates that institutional capital inflows and the establishment of clear regulations will be the primary drivers for the recovery of the industry.

«We view the prospects for 2026 positively and expect an increase in capital inflows into digital assets, primarily driven by institutional investors,» the report by analysts led by Nikolaos Panigirtzoglou states.

JPMorgan experts remain optimistic, even as Bitcoin’s value dips 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 profitability 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 will be compelled to shut down their equipment. This would reduce network difficulty and the overall production cost. JPMorgan refers to this process as a self-regulating mechanism of the market.

Despite the downturn, volatility remains high. Interestingly, interest from institutional investors has proven to be more resilient compared to retail traders. Analysts believe this creates a foundation for a rebound as capital rotates back into digital assets.

The relative investment appeal of Bitcoin has increased. Although gold has significantly outperformed Bitcoin in terms of returns since October, the volatility of the precious metal has surged.

This combination may make Bitcoin a more advantageous instrument for the long term, according to the report.

Below is the dynamic of the CBOE Gold Volatility Index, which measures market expectations regarding price fluctuations of the precious metal over the next 30 days.

JPMorgan expects a recovery of funds flowing into digital assets by 2026, with institutional investors being the main growth drivers, rather than retail players or corporate treasuries.

Further support for this trend is anticipated from regulatory advancements in the U.S., including the potential passing of new bills such as the Clarity Act.

It is worth noting that JPMorgan analysts have expressed their confidence that Bitcoin could reach $266,000 in the long run, suggesting that the asset is becoming «more attractive than gold.»