JPMorgan Analysts Dismiss Crypto Winter, Cite Correction Amid Market Fluctuations
JPMorgan analysts have characterized the latest cryptocurrency sell-off as a meaningful correction rather than the onset of a crypto winter. They attribute the short-term market decline to factors such as ETF outflows related to basis-trade unwinds, liquidations of overly leveraged longs, seasonal year-end illiquidity, and soft macroeconomic conditions ahead of the Federal Reserve's upcoming decision. Despite these headwinds, JPMorgan maintains that these issues do not indicate a structural drop in crypto demand, noting that institutional interest, real-world adoption, and tokenization remain robust.
Geoffrey Kendrick of Standard Chartered added that crypto winters are now a phenomenon of the past. Both JPMorgan and BlackRock hold a bullish macro stance toward 2026, expecting AI-driven growth and a risk-on tilt in equities to support markets. The primary bearish risk cited remains the 4-year cycle seasonality, with the current drawdown consistent with this pattern.
Attention is focused on the Federal Reserve's decision, as a recovery in prices toward all-time highs following the announcement would strengthen the bullish outlook. Presently, Bitcoin trades near $91,900 to $92,000, while Ethereum has risen approximately 6% to around $3,320.
