JPMorgan expects institutional inflows and clearer U.S. regulation to drive a broader crypto recovery starting in 2026.
The crypto market has been underwater for months, with asset prices falling and confidence fading. Blue-chip assets like Bitcoin remain under pressure, and many traders are waiting for clearer signals. Even so, Wall Street bank JPMorgan sees room for a turnaround by 2026. According to the bank, renewed institutional inflows and clearer regulation could help set the stage for recovery.
Institutional Inflows Could Revive Crypto in 2026, JPMorgan Says
Multinational bank JPMorgan has adopted a constructive view on digital assets for 2026, even as prices struggle. Analysts led by Nikolaos Panigirtzoglou expect stronger institutional inflows to support markets next year. Moreover, regulatory progress in the United States could also improve sentiment.
Bitcoin recently traded near $66,300, below JPMorgan’s estimated production cost of about $77,000. Historically, production costs have served as a soft floor for pricing. Trading below that level can pressure miners and force high-cost operators offline.
In addition, the BTC price fell below levels at which many miners break even on costs. That means some miners are earning less than it costs them to produce coins. As prices dropped, network activity reduced, and sentiment turned negative. Institutional participation has held up better than retail flows during the downturn.
Since October 10, 2025, market conditions have remained weak. A sudden crash wiped out over $19 billion in leveraged positions. The total crypto market value fell by more than 25% as asset prices dropped rapidly. After that sharp sell-off, prices have mostly moved sideways without a strong recovery.
Crypto Market Stuck at $2.32T as Recovery Lacks Momentum
At press time, the total crypto market capitalization stands at $2.32 trillion. The figure is far below where the market stood before the crash. Many retail investors are staying on the sidelines because they are unsure about the short-term direction of the market.
Since fewer small traders are buying aggressively, price recovery has been slow. JPMorgan believes money could flow back into crypto once confidence improves and risk appetite returns.
Gold has outperformed Bitcoin since October, indicating its price has held up better. However, gold has also become more volatile, with larger-than-usual price swings.
When gold becomes less stable, some long-term investors may reconsider Bitcoin as an alternative store of value. Analysts think Bitcoin could regain strength over time, especially if large institutions increase their exposure.
Right now, market sentiment remains weak, with prices under pressure. However, JPMorgan also expects money to begin flowing back into crypto in 2026. The bank thinks stronger long-term factors are building in the background.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BSC Chinese meme coins surge across the board, as CZ’s tweet sparks a “Crypto Summer” craze
On April 13, Chinese meme coins across the BSC chain rose across the board, led by “Binance Life,” with a weekly gain of up to 360% and an intraday increase of over 45%. CZ’s post sparked resonance with “Crypto Summer,” energizing sentiment across the entire sector. Although market sentiment has surged in the short term, the high volatility and liquidity risks of meme coins cannot be ignored, and investors need to be cautious.
MarketWhisper1h ago
Bittensor founder accuses former brother of betrayal; TAO’s sudden plunge sparks 9.1 million liquidations
Bittensor co-founder Jacob Steeves accuses Covenant AI’s Simon Dare of intentionally causing damage to the agreement, leading to a sharp drop in TAO tokens. Steeves proposes a locked-staking mechanism that uses on-chain code to enforce commitments and prevent founders from making sudden, surprise exits. Even as the crisis unfolds, Bittensor’s open-source architecture can still ensure the agreement continues to operate, and it is set to hold a meeting to introduce the new mechanism.
MarketWhisper1h ago
Bloomberg strategist Mike McGlone: a crypto bear market or at the early stage, with Bitcoin potentially falling back to $10k
Bloomberg strategist Mike McGlone says the crypto bear market may be in its early stages, and Bitcoin could fall to $10k. Even though Bitcoin ETFs have matched S&P 500 ETF returns, Bitcoin ETFs have higher volatility and the valuation of underlying assets that lack real support remains elevated.
GateNews2h ago
Why is Bitcoin down today? The U.S. military blocks the Strait of Hormuz, but Iran-U.S. talks end in failure
The U.S. imposes a naval blockade on Iran, causing the U.S.-Iran nuclear talks to fall apart. Market risk sentiment intensifies, and Bitcoin drops to $71,000, with a 24-hour decline of 3.1%. Traditional market capital flows into safe-haven assets, and analysts are divided on Bitcoin’s future trend, with $70,000 support acting as a key level.
MarketWhisper2h ago
The Crypto Fear and Greed Index drops to 12, and the market is in extreme fear
Gate News message, April 13. According to Alternative.me data, today the Crypto Fear and Greed Index is 12, down further from yesterday’s 16, with the market in an “extreme fear” state. This index evaluates market sentiment across multiple dimensions, including volatility, market trading volume, social media, market surveys, Bitcoin’s share of the overall market, and Google Trends keyword analysis. The lower the number, the greater the level of fear.
GateNews3h ago
ETH 15-minute drop of 0.66%: short-term holders selling off in tandem with exchange net inflows amplifies the selling pressure
2026-04-12 22:00 to 22:15 (UTC), ETH showed a clear downward move in a highly liquid environment. The candlestick chart indicates a return of -0.66%, with price fluctuations ranging from 2186.76 to 2211.25 USDT, and a swing amplitude of 1.11%. Market attention rose rapidly, short-term sentiment turned cautious, and volatility intensified.
The main driving factors behind this unusual move are a sharp increase in exchange net inflows and concentrated selling by short-term holders. On-chain data shows that over the past 24 hours, net inflow of ETH into exchanges totaled 9,567.65 ETH, suggesting that a large amount of capital entered the market in the short term, potentially increasing selling pressure.
GateNews5h ago
