Despite recent bearish trends in the market, JP Morgan, an American multinational finance company, has maintained a bullish stance on the Bitcoin price outlook. The bank has announced a timeline for the conclusion of ongoing BTC liquidations, with a prediction of a subsequent rebound in the market. According to a research report released by JP Morgan, BTC liquidations are expected to abate in July, signaling the start of a strong bull market as sell-offs decrease.
However, while JP Morgan believes in an impending market recovery, it remains skeptical about the sustainability of high Bitcoin inflows. The bank has revised its former year-to-date crypto net flow from $12 billion to $8 billion. Spot Bitcoin ETFs have been identified as the major driver of substantial inflows into the crypto market this year. The skepticism from JP Morgan also stems from Bitcoin’s high price relative to its production cost and the price of gold.
Nikolaos Panigirtzoglou, a crypto analyst at JP Morgan, has highlighted the recent decline in Bitcoin reserves across exchanges as a contributing factor to the reduction in the estimated net flow of Bitcoin. The decline in Bitcoin reserves is believed to be a consequence of ongoing selling pressures and widespread BTC liquidations carried out by Mt Gox creditors and the German government.
JP Morgan has predicted that the BTC sell-off will come to an end in July, leading to a significant bullish rally for Bitcoin in August. Several crypto analysts and community members have echoed these predictions, suggesting that the recent upsurge in Bitcoin’s price is a continuation of a strong bull market. Despite the aggressive selling by the German government and the market turmoil that ensued, analysts remain optimistic about Bitcoin’s bullish prospects.
The recent announcement by Mt Gox regarding repayments to creditors in July has raised concerns about potential Bitcoin sell-offs. With creditors receiving part of Mt Gox’s 142,000 BTC payment amounting to approximately $9 billion, fears of a widespread Bitcoin dump leading to a significant impact on the cryptocurrency’s price have emerged. In addition to Mt Gox’s redistribution plans, the German government has also been observed selling almost all of its seized Bitcoin holdings from criminals.
The substantial crypto liquidations from Mt Gox creditors and the German government have had a major impact on the price of Bitcoin, causing significant price declines and delaying the highly anticipated Bitcoin bull run. These sell-offs have created uncertainty in the market and raised questions about the future stability of Bitcoin’s price. Despite the challenges posed by ongoing liquidations, JP Morgan’s positive predictions suggest a potential rebound in the market, signaling hope for Bitcoin investors and enthusiasts alike.
Leave a Reply