According to a recent research report by the Wall Street banking giant, JPMorgan, the value of 1.3 million unmined Bitcoin is currently worth $74 billion. Due to the fluctuations in the price of Bitcoin, the asset’s Q2 performances, and the network hashrate, JPMorgan has cut back its predictions for miners. The bank has previously estimated that the notional value of the tokens that are yet to be mined is about $74 billion.
JPMorgan Revises Price Targets for Crypto Stocks
JPMorgan recently revealed that it has revised its price target for several well-known cryptocurrency equities. This move was part of the bank’s continued research into the digital asset industry.
Furthermore, JPMorgan reduced its price objective for CleanSpark (CLSK) from $12.50 to $10.50 while keeping a neutral rating for the company. Similarly, Iren’s (IREN) price target dropped from $11 to $9.50, but the bank retained its overweight rating.
The price target for underweight stock Marathon Digital (MARA) was cut from $14 to $12. The price of Riot Platforms (RIOT), another stock that was deemed overweight, was reduced from $12 to $9.50.
These changes are part of JPMorgan’s larger assessment of the cryptocurrency mining industry, especially in light of the decrease in performance. The bank is cautious about its neutral position on CleanSpark, but it is more upbeat about Iren and Riot. The analysis suggests that investors can take advantage of these equities’ underperformance.
The Four-Year Bitcoin Block Reward Revenue
A projection of the block reward revenue opportunity over the following four years is also included in JPMorgan’s report. According to the research, this amount is almost $37 billion, a 19% decrease from two months ago.
Despite the decline, this estimate still represents an 85% rise over the same period last year. Additionally, this noteworthy year-over-year rise indicates that the cryptocurrency industry still has a lot of promise in the long run despite its bearish short-term outlook.
Furthermore, the bank recognized Riot and Iren as two very promising equities, stating that their current underperformance is a one-time event. For instance, Riot’s performance this year has been hindered by operational problems.
However, as this business improves its production metrics and uptime, JPMorgan anticipates an uptick in sentiment and share price. JPMorgan, however, believes that these setbacks are reversible and strengthen buyers’ purchasing opportunities.
The Bitcoin Market Dominance
Meanwhile, Bitcoin’s market share has increased sharply in recent months. According to a recent Glassnode Insights study, it has risen from 38% in November 2022 to 56% at present.
By comparison, the market share of different digital assets, including Ethereum, stablecoins, and altcoins, has significantly declined. Ethereum’s market share decreased by 1.5%, while stablecoins and altcoins experienced declines of 9.9% and 5.9%, respectively.
This change in market dynamics highlights how capital is becoming increasingly concentrated in the leading cryptocurrencies, particularly in the wake of the cycle low that occurred in November 2022. The study indicates that investors are selecting assets they consider more stable and safe, making Bitcoin the primary beneficiary of this decision.
Crypto Market Performance Insights
The Glassnode report further noted that long-term Bitcoin owners have consistently made money despite market volatility. According to the report, long-term investors have made an estimated $138 million every day in profits.
This amount of money represents the capital needed to absorb the supply of Bitcoin and keep its price steady. On the other hand, the research noted that short-term holders (with an average holding duration of fewer than 155 days) have been adversely impacted by the recent market downturn.
According to the study, the short-term holders’ panic selling contributed to the decline in BTC’s price. The market is currently correcting, and as a result, many of these individuals who purchased Bitcoin during the boom in 2024 are noting realized or unrealized losses.
One key measure included in the study is the MVRV (Market Value to Realized Value) ratio, which is an indicator of the profitability of Bitcoin securities investments.
These investors are holding their assets at a loss because short-term holders’ 30-day average MVRV ratio is below 1.0, which indicates that they are selling their assets.
