Investment banking giant JPMorgan has made a bold prediction regarding the future of Bitcoin and the broader cryptocurrency market. According to a recent statement from the bank, a massive rebound is expected to take place in August. This news comes amidst ongoing liquidations in the market, which JPMorgan anticipates will continue through the end of July.
In an updated projection, JPMorgan has revised its year-to-date net flow estimation, lowering it from a previous prediction of $12 billion to $8 million. The firm attributes this reduction to a decline in Bitcoin reserves across exchanges over the past month. Nikolaos Panigirtzoglous, an analyst at JPMorgan, explained, “The reduction in the estimated net flow is largely driven by the decline in Bitcoin reserves across exchanges.”
The bank also highlighted the impact of continued offloading by the German government, which has seized over $2 billion worth of Bitcoin in recent weeks. This ongoing sale has put significant selling pressure on the market, leading to a decrease in the price of the asset. Currently, Bitcoin is trading at $58,775, a significant drop from its all-time high of $73,000 in March of this year. Despite this decline, the token has shown signs of a slight reversal amid positive US inflation data.
JPMorgan’s optimistic outlook for a rebound in August is based on the expectation that liquidations will cease by the end of July. The bank’s analysts believe that factors such as BTC price relative to production cost and the price of assets like gold will contribute to this anticipated bounce back in the crypto market.
Overall, JPMorgan’s forecast provides a glimmer of hope for investors and enthusiasts in the cryptocurrency space. As the market continues to navigate through challenges such as government liquidations and price fluctuations, the bank’s prediction of a rebound in August offers a ray of optimism for the future of Bitcoin and the broader crypto market.