JP Morgan, a well-known American multinational finance company, has recently expressed a bullish outlook on the Bitcoin price despite recent bearish trends. The bank has set a timeline for the conclusion of the ongoing BTC liquidations and anticipates a subsequent rebound in the market. According to a research report released by JP Morgan, BTC liquidations are expected to decrease this July, leading to the start of a strong bull market as bearish trends caused by sell-offs begin to fade.
While JP Morgan foresees a market recovery on the horizon, the bank remains skeptical about the sustainability of high Bitcoin inflows into crypto assets. The bank has revised its former year-to-date crypto net flow from $12 billion to $8 billion, casting doubt on the continuing influx of funds into the crypto market. Spot Bitcoin ETFs have been identified as the major driver for substantial inflows into the crypto market so far this year. JP Morgan’s skepticism is also fueled by Bitcoin’s high price relative to its production cost and the price of gold.
Nikolaos Panigirtzoglou, a crypto analyst at JP Morgan, has attributed the bank’s reduction in the estimated year-to-date net flow to the recent decline in Bitcoin reserves across exchanges. This decline in Bitcoin reserves is believed to be a result of ongoing selling pressures and extensive BTC liquidations conducted by Mt Gox creditors and the German government. JP Morgan has predicted that the BTC sell-off will come to an end in July, paving the way for a significant bullish rally for Bitcoin in August.
Following JP Morgan’s predictions, numerous crypto analysts and community members have shared the sentiment that the recent increase in Bitcoin’s price signals the continuation of a strong bull market. A crypto analyst known as ‘CryptoYoddha’ on X has indicated that the German government was planning to sell off their remaining BTC just before the bull run. Despite the aggressive selling by the German government and the resulting market turmoil, the analyst remains optimistic about Bitcoin’s bullish prospects.
In June, Mt Gox announced its plans to initiate repayments to creditors starting in July. While this news brought relief to creditors, concerns have arisen regarding potential Bitcoin sell-offs. With creditors beginning to receive portions of Mt Gox’s 142,000 BTC payment valued at around $9 billion, fears have emerged about a widespread Bitcoin dump that could significantly impact the cryptocurrency’s price. Additionally, the German government has been observed selling nearly all of its Bitcoin holdings seized from criminals, further adding to the downward pressure on Bitcoin’s price.
JP Morgan’s bullish stance on the Bitcoin price outlook has sparked optimism among investors and analysts, despite the recent bearish trends in the market. While the bank predicts a rebound in the market following the conclusion of BTC liquidations, concerns linger about the sustainability of high Bitcoin inflows and potential sell-offs that could influence the cryptocurrency’s price movements in the near future.