JPMorgan predicts a significant recovery in the cryptocurrency market starting in August due to reduced bitcoin liquidations and declining reserves.
Points
- JPMorgan forecasts a crypto market recovery beginning in August.
- The German government’s bitcoin reserves dropped significantly.
- Mt. Gox trustee began repayments to creditors.
- Revised estimates show substantial net flows into crypto funds and futures contracts.
JPMorgan has released a bullish forecast for the cryptocurrency market, predicting a significant recovery starting in August. This optimistic outlook follows a major reassessment of the net flow of cryptocurrencies since the beginning of the year, influenced by notable bitcoin liquidations.
JPMorgan’s New Figures on Cryptocurrency Flows
Analysts observed a substantial decrease in the German government’s bitcoin reserves, which dropped from 13,110 BTC to 9,925 BTC in one day. Simultaneously, the Mt. Gox rehabilitation trustee initiated repayments in bitcoin to creditors, marking a key step following the massive 2014 hack.
The revised estimate includes $14 billion in net flows into crypto funds, $5 billion from Chicago Mercantile Exchange （CME） futures contracts, and $5.7 billion from crypto venture capital funds.
JPMorgan predicts a crypto market recovery in August! Reduced liquidations and declining bitcoin reserves suggest a positive outlook. 
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According to JPMorgan, this revision of net flows could stabilize the market. “This revision of estimates should help stabilize the market as exchange reserves decline,” the analysts specified.
Previously, JPMorgan considered the initial forecasts of $12 billion overly optimistic, given the high value of bitcoin relative to its production cost and the price of gold. In June, the bank had expressed doubts about the sustainability of such inflows into the crypto industry, questioning the robustness of these projections.
解説
- JPMorgan’s Analysis: The bank’s reassessment shows a positive outlook due to declining bitcoin reserves and reduced liquidations.
- Market Impact: This prediction could boost investor confidence, potentially driving new investments into the market.
- Future Trends: If the recovery starts as predicted, we might see a resurgence in bitcoin prices and other cryptocurrencies.
- Investor Strategy: Investors might consider this a strategic entry point, leveraging the expected market stabilization for potential gains.