JPMorgan: Bitcoin's Correction Is Meaningful But Not Bearish, Crypto Winter Not Here

Citing MetaEra, JPMorgan analysts stated on December 10 that Bitcoin's recent pullback does not signal the start of a bear market, and the broader bull cycle remains intact. Bitcoin fell to $81,000 in November, marking its first monthly decline since May 2023, but the firm noted the correction is not indicative of structural deterioration. As of Tuesday, Bitcoin traded near $93,000, down about 1.5% from its peak. The team emphasized that the post-election rally in digital assets was followed by a normal market adjustment, with over 20% in market cap losses and weaker trading volumes. Stablecoin growth, now at 17 consecutive months of expansion, reflects market resilience. JPMorgan also highlighted that traditional four-year market cycles are weakening, with ETF investors providing more stable capital flows, making deep corrections of 80% increasingly unlikely. Separately, Standard Chartered noted in a report that the crypto winter may already be over as Fed policy expectations ease.