The post Crypto Entering “Self-Correction” Before 2026 Recovery appeared on BitcoinEthereumNews.com.
Bitcoin Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, are turning constructive on digital assets for 2026, arguing that the market is undergoing a deeper transformation rather than entering a prolonged downturn. Key Takeaways JPMorgan expects a 2026 crypto rebound led by institutions, not retail. Bitcoin below its $77,000 production cost is seen as temporary and stabilizing. Regulatory clarity in the U.S. could unlock large-scale institutional inflows. Long-term Bitcoin target remains $266,000. After a sharp correction in early 2026 pushed Bitcoin below key cost benchmarks, the bank describes the move as part of a broader “self-correction” phase that could ultimately lay the groundwork for more durable price stability. Bitcoin recently slipped into the mid-$60,000 range, falling below JPMorgan’s updated production cost estimate of around $77,000. That figure itself has dropped from roughly $90,000 earlier in the year, reflecting improved mining efficiency and shifting energy inputs. According to the bank, trading below production cost is typically unsustainable over the long term, as it pressures high-cost miners out of the network and gradually establishes a firmer structural floor. Regulation as a Catalyst, Not a Risk A central pillar of the bullish 2026 thesis is regulatory clarity. JPMorgan views potential U.S. legislation, including proposals such as the Digital Asset Market Clarity Act, as a catalyst rather than a headwind. Clearer rules are expected to reduce legal uncertainty and unlock large-scale institutional participation that has remained cautious amid fragmented oversight. Instead of another cycle driven primarily by retail speculation and momentum trading, the bank anticipates a shift toward steadier, longer-term capital inflows through spot exchange-traded products and institutional mandates. This evolution in buyer composition is seen as a structural upgrade for the asset class. Gold Rotation and Volatility Dynamics JPMorgan also highlights a potential asset rotation dynamic. While gold has recently outperformed Bitcoin, its rising…