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 released on Wednesday, JP Morgan suggested that BTC liquidations should subside in July this year, predicting the start of a strong bull market as the downward trends caused by sales 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.
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For one, JP Morgan revised and grossly reduced its 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 crypto market.
JP Morgan’s skepticism also stems from Bitcoin’s high price relative to its cost of production and the gold price. A crypto analyst at the bank, Nikolaos Panigirtzoglou suggested that the bank’s reduction in estimated year-to-date net inflow was also due to the recent decline in Bitcoin reserves between exchanges.
O decline Bitcoin reserves over the past month are believed to be a result of continued selling pressure 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 bullish for Bitcoin In August.
Following the bank’s predictions, many crypto analysts and community members suggested that the recent rise in Bitcoin’s price is a continuation of a strong bull market.
A crypto analyst identified as ‘CryptoYoddha’ on X (formerly Twitter) revealed that the German government was preparing to sell the 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 payments 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 discomfort about possible Bitcoin sales.
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With creditors constantly receiving part of the 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 has also been seen. selling almost 100% of their Bitcoin holdings seized from criminals.
Those substantial crypto liquidations put a big damper on the price of Bitcoin, triggering serious price drops that have significantly delayed Bitcoin’s long-awaited bull run. A crypto 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