JPMorgan Analyzes Top Cryptocurrency Performance in April
- Bitcoin Outperforms Gold Over Past Year
- Bitcoin's Prospects Continue to Look Positive
This marks a sharp turn from the downturn when Bitcoin was hovering around $80,000 months ago. JPMorgan's research found that Bitcoin's price continued to strengthen in April, with an even more rapid rise in May.
In the previous weeks, the market had been severely impacted - with US President Trump announcing comprehensive tariffs that triggered global trade war panic, leading to widespread international market pressure.
In its May 14th report, JPMorgan noted that while Trump advocated for supporting cryptocurrency policies, during his first hundred days in office, he neither drove crypto prices up nor achieved regulatory reforms.
However, as Trump made concessions on trade issues and more global cryptocurrency adoption emerged at both corporate and national levels, market pessimism has gradually dissipated.
"The bull market foundation for Bitcoin has never been so solid," David Marcus, former PayPal executive and prominent Bitcoin supporter, tweeted on May 10th, "Fasten your seatbelts."
This top cryptocurrency has risen 10% since May and is now priced at $103,500.
JPMorgan illustrated its recovery trajectory through six charts.
Bitcoin's Value Reassessment
The early-year sharp decline has now been reversed, with exchange-traded products, including Bitcoin ETFs from BlackRock and Fidelity, seeing positive capital inflows, creating the best monthly performance since January.
JPMorgan pointed out that BlackRock's IBIT was undoubtedly April's biggest winner, capturing 84% of total Bitcoin ETF inflows, with an overall capital influx of $3 billion.
dune analytics data shows that the Bitcoin ETF market is currently dominated by BlackRock IBIT, with a market share of 52%.
According to defillama, Bitcoin ETFs have accumulated $96 billion in funds since their 2024 launch, compared to Ethereum ETFs' managed assets of just $5 billion.
Bitcoin "Reclaiming Lost Ground"
April's market was dominated by Trump's tariff volatility, with the market experiencing severe fluctuations until recent tax suspension and agreement helped drive price recovery.
Bitcoin's historically correlated tech stock benchmark, the Nasdaq index, was about 15% lower than its January inauguration level for most of April.
As Bitcoin now strongly breaks through the $100,000 mark, Nasdaq has also synchronized its recovery. JPMorgan noted that Bitcoin's monthly rise was "predominantly concentrated in the final week".
Competing with Gold
BlackRock CEO Larry Fink once advocated Bitcoin's potential as a hedge asset similar to gold.
However, JPMorgan's research found that this potential has not yet materialized.
Meanwhile, Bitcoin's volatility continues to decrease. According to CoinGlass data, JPMorgan pointed out that Bitcoin and gold's 30-day volatility have shown a synchronized downward trend.
In a standardized comparison, by the end of March, Bitcoin had cumulatively risen 15%, while gold rose 5%.
Cryptocurrency Stocks Surge
The total market cap of listed crypto companies has contracted 34% from its November 2024 post-election high of around $120 billion to $76 billion by the end of April.
April brought a glimmer of hope, with total market cap growing 19% month-on-month.
JPMorgan noted that Galaxy Digital, which announced plans to list in the US in April, was the month's biggest market cap growth winner, increasing by 45%.
This week, news emerged that Coinbase will be included in the S&P 500 from May 19th, driving its stock price up 16%. According to JPMorgan data, the company's total market cap grew 18% month-on-month.
