Markets
Here’s When the Crypto Bull Market Will Start, According to JPMorgan
Global Investment banking giant JPMorgan Chase (London share: JPM) provides for a reduction Encrypt liquidations this month, signaling a potential market recovery starting in August.
The company’s recent research relationship highlights a significant revision in year-to-date estimates of cryptocurrency net flows, from $12 billion to $8 billion, providing crucial information for investors and traders.
This adjustment reflects significant liquidations by creditors of the now-defunct Mt. Gox. exchange and Gemini’s creditors, as well as the German government’s sales of seized Bitcoin (BTC) resources.
Key factors influencing the market
Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 after a massive cyber attack that resulted in the loss of 850,000 Bitcoin.
Recently, the Mt. Gox Rehabilitation Trustee announced the start of Bitcoin refunds to creditors, distributing approximately $9 billion in BTC and $50.8 million in Bitcoin Cash (BCH). This move is expected to relieve some of the selling pressure in the market.
Another key factor influencing the market is the German government’s active liquidation of seized Bitcoin assets.
By July 11, the German government’s Bitcoin holdings had fallen from 13,110 BTC to 9,925 BTC, finally reaching zero after weeks of selling. These significant sell-offs contributed to market fluctuations, adding selling pressure and influencing Bitcoin’s price movements.
JPMorgan’s lowered estimate of $8 billion is compounded by several key factors, including $14 billion in net inflows into crypto funds by July 9, $5 billion from Chicago Mercantile Exchange (CME) futures flows, and $5.7 billion in crypto venture capital raisings since the beginning of the year.
This total has been adjusted by $17 billion to account for rotation from exchange wallets to the new Bitcoin spot. exchange-traded funds (ETFs).
BTC Price Analysis
Despite the downward revision, JPMorgan’s analysis suggests a potential market recovery by August.
Bitcoin price could see a significant increase next month due to a decrease in selling pressure and fear of missing out (FOMO). Despite a continued decline from its all-time high in March (ATH), CryptoQuant’s current charts to suggest a potential further downtrend, placing Bitcoin at a pivotal point.
Bitcoin is currently trading at $60,013, up 3% over the past 24 hours.
BTC 7-day price chart. Source: Finbold
This price action indicates a cooling of selling pressure as the German government completes its liquidations. Aggressive whale buying, driven by falling prices and inflow rates of Bitcoin ETFs, signals growing demand and a potential upside trend.
Investors and traders should monitor these developments closely as the market prepares for a potential recovery.
With strategic planning and informed decision-making, this anticipated recovery could provide significant opportunities for those invested in the cryptocurrency market.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.