The post Crypto Liquidations To Subside, BTC And Crypto Market To Rebound: JP Morgan appeared first on Coinpedia Fintech News
Bitcoin And Crypto Market To Rebound
In a recent research report on Thursday, JP Morgan stated that the crypto liquidations should decrease this month and the market is expected to see a massive rebound from August onward. The bank has also reduced its year-to-date crypto net flow estimate from $12 billion previously to $8 billion in an updated projection.
The Wall Street firm revealed that it was skeptical about the prior estimate of $12 billion continuing for the rest of the year given how high Bitcoin was relative to its production cost or relative to the price of gold, the report read.
Analysts led by Nikolaos Panigirtzoglou wrote that ‘the reduction in the estimated net flow is largely driven by the decline in Bitcoin reserves across exchanges over the past month’.
The Cause Of Decline In Reserves
The bank said that the decline in reserves is likely a reflection of bitcoin liquidations by creditors of Gemini or the defunct crypto exchange Mt. Gox, or selling by the German government which has been offloading crypto that it seized from the criminal activities.
The ongoing sale of BTC by the German government has been a concern for the market. Its seizure of more than $2 billion in the leading cryptocurrency has led to massive sales over the last several weeks and the price of the asset has reflected the increased pressure.
The bank’s reduced estimate of $8 billion comprises a $14 billion net flow into crypto funds by July 9, Chicago Mercantile Exchange (CME) future flows of $5 billion, $5.7 billion of fundraising by crypto venture capital funds year-to-date, minus a $17 billion adjustment to account for the rotation from wallets on exchanges to new spot bitcoin exchange-traded funds. (ETFs).
Bitcoin Slightly Recovering
Bitcoin is currently trading at $57,820. The token has fallen more than 12% over the last 30 days, according to CoinMarketCap. However, it is reversing slightly amidst the positive US inflation data revealed today.