JPMorgan Says Crypto Liquidations Will End And Bitcoin Bull Market Will Begin, Here’s When

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As a seasoned researcher with extensive experience in the financial industry and a keen interest in the crypto market, I have closely monitored JP Morgan’s latest prediction of a Bitcoin market rebound in August. Given my background and expertise, I find this announcement particularly intriguing.

JP Morgan, a major American financial corporation, remains optimistic about the future price of Bitcoin, even amidst current bearish tendencies. The bank has disclosed the expected completion date for ongoing Bitcoin liquidations and anticipates a market recovery afterwards.

JP Morgan Predicts Bitcoin Market Rebound In August

In their research report published on Wednesday, JP Morgan predicted that the selling pressure on Bitcoin (BTC) could ease up by July, indicating the beginning of a robust bull market as the bearish trends triggered by sell-offs start to wane. Despite their optimistic outlook for a market rebound, the bank remains cautious regarding the longevity of substantial Bitcoin inflows into crypto assets in the year-to-date.

As a researcher, I’ve come across an intriguing development in the crypto market: JP Morgan has significantly revised its year-to-date crypto net flow from $12 billion to $8 billion. This means that the bank has reduced the amount it previously reported as flowing into cryptocurrencies by a substantial margin.

JP Morgan’s caution towards Bitcoin is driven by its significant price tag compared to the costs of producing it and the value of gold. According to a cryptocurrency analyst at the bank, Nikolaos Panigirtzoglou, the decrease in estimated year-to-date net inflows can be attributed to the recent drop in Bitcoin holdings on exchanges.

I’ve analyzed the recent drop in Bitcoin reserves over the last month, and it seems to be driven primarily by intense selling pressures and large-scale liquidations of Bitcoin held by Mt Gox creditors and the German government. Previously, I mentioned that JP Morgan anticipates this sell-off will conclude in July. Consequently, we can expect a significant bullish surge for Bitcoin starting in August.

Based on the bank’s forecast, numerous crypto experts and community participants believe that Bitcoin’s current price surge represents the ongoing strength of an extended bull market.

A crypto expert named “CryptoYoddha” on platform X (previously Twitter) has disclosed that the German government was planning to offload their last bits of Bitcoin right before the price surge. Despite this massive selling by the Germans and the resulting market chaos, CryptoYoddha observed that Bitcoin’s bullish trend remains intact.

About The Ongoing BTC Liquidations

As a researcher studying the recent developments at Mt Gox, I’ve learned that the bankrupt Bitcoin exchange announced in late June their intention to initiate creditor repayments in July. This announcement brings hope and relief to the affected creditors. However, there is an undercurrent of anxiety as well due to concerns about possible Bitcoin sales from the exchange to fund these repayments.

Creditors continue to receive payments totaling around 142,000 BTC or approximately $9 billion from Mt Gox. This transaction, combined with the German government’s decision to sell nearly all of the Bitcoin it had confiscated from criminal activities, has raised concerns in the market. If these large amounts of Bitcoin were to flood the market at once, the price could experience a significant downturn.

The significant cryptocurrency sell-offs have noticeably suppressed Bitcoin’s price, causing serious setbacks to the eagerly awaited Bitcoin bull market. According to crypto analyst ‘Rekt Capital’, Bitcoin’s bull market, as determined by standard halving cycles, has already progressed by approximately 40.1%.

JPMorgan Says Crypto Liquidations Will End And Bitcoin Bull Market Will Begin, Here’s When

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2024-07-15 19:34