Markets
Here’s When the Crypto Market Will Start, According to JPMorgan
Global investment Bank officer giant JPMorgan Chase (NYSE: JPM) predicts a reduction in Cryptocurrency liquidations this month, signaling a potential market recovery from August onwards.
Recent company research report highlights a significant revision in year-to-date cryptocurrency net inflow estimates from $12 billion to $8 billion, providing crucial insights for investors and traders.
This adjustment reflects significant liquidations by creditors of the defunct Mt. Gox exchange and Gemini creditors, as well as sales by the German government of seized Bitcoin (BTC) active.
Main factors influencing the market
Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 after a major hack that resulted in the loss of 850,000 bitcoins.
Recently, the Mt. Gox Rehabilitation Trustee announced the start of Bitcoin repayments to creditors, distributing approximately $9 billion in BTC and $50.8 million in Bitcoin Cash (BCH). This move is expected to alleviate some selling pressure in the market.
Another important factor influencing the market is the active liquidation of Bitcoin assets seized by the German government.
On July 11, the German government’s Bitcoin holdings dropped from 13,110 BTC to 9,925 BTC, eventually reaching zero after weeks of selling. These significant sales contributed to market volatility, increasing selling pressure and influencing Bitcoin’s price movements.
JPMorgan’s reduced estimate of $8 billion is compounded by several key factors, including a net inflow of $14 billion into crypto funds through July 9, $5 billion in futures flows from the Chicago Mercantile Exchange (CME) and $5.7 billion in crypto venture capital raising year-to-date.
This total is adjusted by $17 billion to account for the rotation of exchange wallets into the new spot Bitcoin. 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 in the coming month due to declining selling pressure and fear of missing out (FOMO). Despite a continued decline since its March all-time high (ATH), CryptoQuant’s current charts suggest a potential downtrend, positioning Bitcoin at a crucial point.
Bitcoin is currently trading at $60,013, reflecting a 3% increase in the last 24 hours.
BTC 7-day price chart. Source: Finbold
This price action indicates a cooling off in selling pressure as the German government completes its liquidations. The aggressive buying by whales, driven by the price drop and inflows into Bitcoin ETFs, signals increasing demand and a potential uptrend.
Investors and traders should monitor these developments closely as the market prepares for a potential rally.
With strategic planning and informed decision-making, this early recovery could offer significant opportunities for those who have invested in the cryptocurrency Marketplace.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.