JP Morgan Predicts August Crypto Market Recovery: Is a Bull Run Next?
The cryptocurrency market has been on a rollercoaster ride this year, with Bitcoin hitting an all-time high in March only to see a significant drop in prices in the following months. However, JP Morgan, a renowned banking and financial services institution, has now predicted that August could be the month for a crypto market recovery.
In a recent report, JP Morgan revised its year-to-date crypto netflow estimation from $12 billion to $8 billion. The firm analyzed various factors such as Bitcoin’s production cost, its relation to the price of gold, and the decrease in exchange reserves to come up with this new valuation. Nikolaos Panigirtzoglou, JP Morgan’s analyst and strategist, highlighted the decline in Bitcoin reserves across exchanges as a significant factor in the revised estimation.
The report also mentioned that the decline in Bitcoin liquidation was due to various factors such as selling by the German government and the transfer of tokens by the Mt. Gox exchange. Once these factors subside, the market could see a significant boost.
With the potential market recovery in August and a decrease in selling pressure, there is speculation that Bitcoin prices could surge due to fear of missing out (FOMO). Whales have been aggressively buying Bitcoin, indicating rising demand. Additionally, the influx of Bitcoin ETFs is also contributing to this increased demand.
While the market behavior remains uncertain, the prediction of a bull run is becoming more challenging. However, with JP Morgan’s forecast of a market recovery next month, there is hope for a potential turnaround in the cryptocurrency market. Stay tuned for more updates on this developing story.
