Bitcoin has seen a notable decline in value since hitting an all-time peak just a month prior, raising worries that the cryptocurrency market could be approaching a price collapse. The bitcoin price, showing an increase of around 35% from the same period last year, has gone through notable fluctuations in 2025, dropping to roughly $75,000 in April before bouncing back, driven by comments from Tesla billionaire Elon Musk about the $38 trillion U.S. debt burden. Traders are voicing worries about a concerning situation for bitcoin’s price that seems to be unfolding, while JPMorgan has revealed that its clients are increasing their investments in bitcoin, aligning with the bank’s analysts predicting an imminent rise in bitcoin prices.
JPMorgan’s brokerage clients have notably boosted their investments in bitcoin via BlackRock’s bitcoin exchange-traded fund, increasing their stakes by 64% in recent months, as revealed in a regulatory filing from the bank. Jamie Dimon, recognized for his critical view on bitcoin and crypto, has recently adopted a more accommodating stance towards the technology, swayed by the growing demand from the bank’s clients for access to the highly-volatile asset. The bets on bitcoin come as U.S. President Donald Trump continues to back bitcoin and cryptocurrency, promoting his administration’s crypto efforts and connecting his family’s financial interests with bitcoin and crypto.
Meanwhile, market has embraced bitcoin, as BlackRock’s IBIT bitcoin ETF has emerged this year as the fastest-growing ETF of all time, reaching $80 billion in assets under management five times quicker than the previous record holder, the Vanguard S&P 500 ETF. This year’s surge in bitcoin prices has aligned with gold hitting its all-time high, leading to speculation about further potential gains for bitcoin. Nikolaos Panigirtzoglou, have adjusted their bitcoin price target upwards, claiming that the worst volatility is now “behind us.” They emphasize a volatility-adjusted comparison to gold that could drive the bitcoin price to $170,000, leading to a market capitalization of $3.5 trillion for bitcoin. “This mechanical exercise suggests considerable potential for bitcoin in the upcoming 6-12 months,” Panigirtzoglou noted, mentioning that after being $36,000 overvalued relative to gold at the end of last year, bitcoin is currently approximately $68,000 undervalued.”
The recent, sudden decline in bitcoin prices, which has pushed the cryptocurrency into a technical bear market, is being linked to long-term holders selling off their assets. “We are observing significant, long-term bitcoin holders realizing some gains after maintaining their positions for several years,” Alex Blume, the chief executive of investment advisor Two Prime, noted in emailed comments. “The selling isn’t significantly affecting the price, as large institutions that have recently entered the market, such as ETFs, corporate treasuries, and sovereign wealth funds, are actively purchasing.” Looking ahead, it seems that the price will show less fluctuation than before and is likely to move sideways for a while. Market analysts have pointed out the recent bitcoin ETF inflows as a possible sign that the bitcoin price and the wider crypto market could be ready for a recovery. “Crypto ETF inflows finally turned positive, marking a rare moment of growth after a quiet week,” Gracy Chen stated. “Rather than simply taking advantage of lower prices, this appears to me as initial indications of restored institutional trust following a few days of uncertainty.”