After bitcoin fell below its estimated production cost, the bank said stronger fundamentals and rising institutional inflows could lift crypto in 2026. Feb 11, 2026, 5:34 p.m. Wall Street bank JPMorgan is striking a constructive tone on crypto despite the plunge so far this year, arguing that institutional inflows and regulatory clarity could underpin the next leg higher for digital assets. "We are positive in crypto markets for 2026 as we expect a further rise in the digital asset flow but more led by institutional investors," analysts led by Nikolaos Panigirtzoglou, said in the Monday report. STORY CONTINUES BELOW The optimism comes despite the recent sharp correction, which dragged bitcoin BTC $66,365.64 below the bank’s estimated production cost, a level that has historically acted as a soft price floor. The world's largest cryptocurrency was trading around $66,300 at the time of publication. Crypto markets have endured a steep pullback over the past few weeks. Bitcoin briefly fell below key breakeven levels tied to miner production costs, compressing sentiment and trimming onchain activity. Despite the drawdown, volatility remains elevated and institutional interest has held up better than retail engagement, setting the stage for a potential rebound if capital rotation into digital assets resumes. The analysts now estimate bitcoin’s production cost at roughly $77,000, down significantly in recent weeks. While prolonged trading below that level could pressure miners and force higher-cost operators offline, in turn lowering the aggregate production cost, the bank sees the dynamic as ultimately self-correcting. At the same time, bitcoin’s relative appeal has improved. Gold has significantly outperformed BTC since October, while the precious metal’s volatility has climbed sharply. That combination, the report argued, makes BTC look increasingly attractive versus gold on a long-term basis. JPMorgan expects a rebound in digital asset flows in 2026, led primarily by institutional investors rather than retail traders or digital asset treasuries (DATs). That shift, it says, will likely be supported by further regulatory progress in the U.S., including potential passage of additional crypto legislation such as the Clarity Act. Read more: Bitcoin a tech trade for now, not digital gold, says Grayscale AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Cryptos crumble, bitcoin falls through $66,000, as Friday's bounce fades 1 hour ago With so many other asset markets in rally mode, investors for the moment appear to have moved on from crypto. What to know: Friday's crypto bounce is sharply reversing on Wednesday, with bitcoin falling back below $66,000. Fading Fed rate cut hopes are weighing on markets, but the crypto bear market began last year as the U.S. central bank was cutting rates. The hard data, along with anecdotal evidence, suggests crypto investors have lost interest and moved on to any number of other rallying markets. Read full story