Bitcoin
JPMorgan says crypto sell-offs will end and Bitcoin bull market will begin. Here’s when
American financial multinational JP Morgan maintained an optimistic stance regarding the Bitcoin Price Outlook despite recent downward trends. The bank announced the timeline for completion of the BTC liquidations in progresspredicting a subsequent recovery in the market.
JP Morgan Predicts Bitcoin Market Recovery in August
In a research report on Wednesday, JP Morgan suggested that BTC liquidations are likely to ease in July, predicting the start of a strong bull market as the bearish trends caused by the sell-offs subside. Although the bank believes that a market recovery is imminentis also skeptical about the sustainability of high Bitcoin inflows in its year-to-date flow into crypto assets.
For one, JP Morgan revised and grossly reduced its previous year-to-date net crypto inflow from $12 billion to $8 billion. So far this year, Spot Bitcoin ETFs have been the main driver of substantial inflows into the cryptocurrency market.
JP Morgan’s skepticism also stems from Bitcoin’s high price relative to its production cost and the gold price. A cryptocurrency analyst at the bank, Nikolaos Panigirtzoglou, suggested that the reduction in the bank’s estimated net inflow year-to-date was also due to the recent decline in Bitcoin reserves between exchanges.
O decline in Bitcoin reserves over the past month is believed to be a result of ongoing selling pressures and widespread BTC liquidations executed by Mt Gox Creditors and the German government. As mentioned earlier, JP Morgan has predicted that this BTC sell-off will officially end in July, giving rise to a substantial Bitcoin high In August.
Following the bank’s predictions, many cryptocurrency analysts and community members have suggested that the recent rise in Bitcoin’s price is a continuation of a strong bull market.
A cryptocurrency analyst identified as ‘CryptoYoddha’ on X (formerly Twitter) revealed that the German government was preparing to sell its remaining BTC just before the bull run. Despite the aggressive selling by the German government and the subsequent market turmoil, the analyst noted that Bitcoin still looks bullish.
About ongoing BTC liquidations
In early June, Mt Gox announced that it would make repayments to creditors in July. While the now-defunct Bitcoin exchange’s decision to begin its repayment process is good news for creditors, there is also a underlying malaise about potential Bitcoin sales.
With creditors gradually receiving part of 142,000 BTC payout from Mt Gox worth around $9 billion, market fears are somewhat justified as a widespread Bitcoin dump would have a major impact impact on cryptocurrency price. In addition to Mt Gox’s substantial Bitcoin redistribution plans, the German government was also seen selling almost 100% of their Bitcoin assets were seized from criminals.
Those substantial cryptocurrency liquidations have put a major hurdle in the price of Bitcoin, triggering severe price drops that have significantly delayed Bitcoin’s long-awaited bull run. A cryptocurrency analyst identified as ‘Rekt Capital’ indicated that Bitcoin’s bull market based on standard halving cycles has already advanced 40.1%.
Featured image created with Dall.E, chart from Tradingview.com