HomeCrypto NewsJPMorgan predicts Bitcoin and crypto market will bounce back in August

JPMorgan predicts Bitcoin and crypto market will bounce back in August

JPMorgan’s Crypto Market Forecast and Net Flow Estimates Update

JPMorgan Predicts Crypto Market Rebound in August, Reduces Net Flow Estimates

In a recent research note, analysts at JPMorgan have forecasted a positive outlook for the crypto market, predicting a decent bounce starting in August. This comes as welcome news for investors who have seen the market struggle in recent months, with Bitcoin prices taking a significant hit.

The decline in Bitcoin prices, which reached highs of $73,000 in March, has been attributed to various factors including miner offloading after network rewards were reduced, a dumping spree by the German government, and news of imminent Mt.Gox repayments. These events have led to increased sell-off pressure and liquidations in the market.

Despite the recent challenges, JPMorgan analysts believe that liquidations will begin to subside this month, paving the way for a potential market recovery. However, the bank has revised its net flow estimates down from $12 billion to $8 billion, citing concerns about BTC’s high price relative to its production cost and gold, as well as decreasing exchange reserves and broader sell-off pressure.

The decrease in Bitcoin reserves can be attributed to liquidations by Gemini or Mt. Gox creditors, as well as the German government’s sale of 50,000 BTC seized from a piracy site. On-chain data shows that the German government’s wallet currently holds around 4,925 BTC, worth approximately $283 million.

As the crypto market continues to navigate through these challenges, investors will be closely watching for signs of a potential rebound in the coming months. With JPMorgan’s optimistic forecast, there is hope that the market may soon see a turnaround and regain some of its lost momentum.

New Updates

Popular Updates


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.