JPMorgan Says Bitcoin and Crypto Markets Will Recover in August

Investment banking giant JP Morgan recently said that Bitcoin and the broader cryptocurrency market will see a massive recovery in August. In fact, the bank also noted that the ongoing sell-off in the market is expected to last until the end of July.

The bank also lowered its year-to-date net cash flow estimate in an updated projection. Specifically, the firm expects $8 million in cash flows, down from its previous forecast of $12 billion. The market has faced increasing selling pressure in recent weeks. This is especially true given the continued unloading by German government.

Read too: US Bitcoin Miners Hit Record $22.8 Billion Market Cap, JPMorgan Says

JPMorgan expects crypto recovery in August

Source: Watcher.Guru

In a research report released this week, JPMorgan predicted that both Bitcoin and the cryptocurrency market as a whole would recover in August. The bank’s analysts discussed the likelihood of liquidations ending in July. Additionally, they gave insights into the change in the net inflow forecast.

“The reduction in estimated net inflows was largely driven by the decline in Bitcoin reserves across all exchanges over the past month,” said Nikolaos Panigirtzoglous of JPMorgan. The bank said the $12 billion mark was highly dubious. This is likely due to the price of BTC relative to the cost of production and the price of assets like gold.Source: The Financial Technology Report

Read too: Bitcoin ETF Numbers Are Overblown, Could Be Corrected: JPMorgan

The German government’s ongoing sell-off of BTC has been an ongoing problem for the market. Its seizure of over $2 billion in the leading cryptocurrency has led to massive sell-offs in recent weeks. The asset’s price has reflected the increased pressure.

The asset is currently trading at $58,775, which is a far cry from its all-time high of $73,000 reached in March this year. Furthermore, the token has fallen by over 12% in the past 30 days, according to CoinMarketCap. However, it is reversing slightly amid positive US inflation data revealed today.

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