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JPMorgan Predicts Crypto Market Rebound in August
JPMorgan forecasts a potential resurgence in the crypto market for August. Explore the analysis and predictions for the upcoming month in the digital asset space.
Crypto liquidations are projected to decrease this month, paving the way for a market recovery starting from August, according to a recent JPMorgan research report released on Wednesday.
The banking giant revised its year-to-date crypto net flow estimate to $8 billion from the previous $12 billion figure. JPMorgan expressed skepticism that the initial estimate of $12 billion would persist throughout the year, citing the high valuation of bitcoin (BTC) compared to its production cost and the price of gold.
The report highlighted a decline in bitcoin reserves across exchanges over the past month as a primary factor behind the adjusted net flow estimate. This decrease in reserves is believed to be linked to bitcoin liquidations by creditors of Gemini and the now-defunct crypto exchange Mt. Gox, as well as the sale of crypto assets by the German government, which has been disposing of seized assets from criminal activities.
JPMorgan’s revised estimate of $8 billion comprises a $14 billion net flow into crypto funds by July 9, $5 billion from Chicago Mercantile Exchange (CME) futures flows, $5.7 billion raised by crypto venture capital funds year-to-date, offset by a $17 billion adjustment to reflect the shift from wallets on exchanges to new spot bitcoin exchange-traded-funds (ETFs).