Investment banking giant JPMorgan recently said that Bitcoin and the greater cryptocurrency market will see a massive rebound take place in August. Indeed, the bank also noted that ongoing liquidations taking place in the market are expected to last through the end of July.
The bank had also lowered its year-to-date net flow estimation in an updated projection. Specifically, the firm forecasts $8 million in flows as opposed to previous $12 billion prediction. Over the last several weeks, the market has faced increased selling pressure. Especially from continued offloading by the German government.
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JPMorgan Expects Crypto Bounce Back in August
In a research report issued this week, JPMorgan forecasted both Bitcoin and the crypto market as a whole to bounce back in August. The bank’s analysts discussed the likelihood that liquidations cease in July. Moreover, they gave insight into the change in net flow prediction.
“The reduction in the estimated net flow largely driven by the decline in Bitcoin reserves across exchanges over the past month,” JPMorgan’s Nikolaos Panigirtzoglous said. The bank said that the $12 billion mark was highly doubtful. This is likely due to BTC price relative to the production cost and price of assets like gold.
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The ongoing sale of BTC by the German government has been a continued issue for the market. Its seizure of more than $2 billion in the leading cryptocurrency has led to massive sales over the last several weeks. The price of the asset 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 it hit in March of this year. Moreover, the token has fallen more than 12% over the last 30 days, according to CoinMarketCap. Yet, it is reversing slightly amid positive US inflation data revealed today.
