The Crypto Market Is Poised for a Rebound
If you have been closely following the crypto market, you’ll be pleased to know that according to a recent research report by JP Morgan, there is good news on the horizon. The report states that the crypto liquidations are expected to decrease this month, paving the way for a significant market rebound starting from August. Here are some key takeaways from the report:
JP Morgan’s Updated Projection 📈
- The bank has revised its year-to-date crypto net flow estimate from $12 billion to $8 billion.
- This revision is based on the bank’s skepticism about the sustainability of the prior estimate of $12 billion for the rest of the year.
- The decrease in the estimated net flow is attributed to the decline in Bitcoin reserves across exchanges over the past month.
The Decline in Reserves 🔻
JP Morgan noted that the reduction in Bitcoin reserves is likely due to various factors such as:
- Bitcoin liquidations by creditors of Gemini or the defunct crypto exchange Mt. Gox.
- Selling of Bitcoin by the German government, which has been offloading crypto seized from criminal activities.
Concerns Over German Government’s BTC Sales 🇩🇪
- The ongoing sale of BTC by the German government, which has seized over $2 billion worth of the leading cryptocurrency, has raised concerns in the market.
- These massive sales have put significant pressure on the price of Bitcoin in recent weeks.
Breakdown of the $8 Billion Estimate 💰
The bank’s revised estimate of $8 billion comprises:
- A net flow of $14 billion into crypto funds by July 9.
- CME future flows totaling $5 billion.
- $5.7 billion raised by crypto venture capital funds year-to-date.
- A $17 billion adjustment to factor in the rotation from wallets on exchanges to new spot Bitcoin exchange-traded funds (ETFs).
Bitcoin Shows Signs of Recovery 📈
Despite the recent dip, Bitcoin is currently trading at $57,820. While the token has experienced a more than 12% decline over the last 30 days, it is showing signs of recovery, especially in response to positive US inflation data released today.
Hot Take: Stay Optimistic in the Crypto Market 🚀
As we look ahead to the coming months, it’s essential to maintain a positive outlook on the crypto market. With the expected decrease in crypto liquidations and the potential for a market rebound, there are reasons to be optimistic about the future of digital assets. Keep a close eye on market developments and stay informed to make well-informed decisions in this evolving landscape. Happy trading!
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