News
JPMorgan announces imminent return to the market!
17:49 ▪ 3 minute read ▪ by Luc Jose A.
The future of the cryptocurrency market is sparking a lot of speculation. The latest comes from JPMorgan, which predicts a significant recovery starting in August. This forecast comes after a significant reassessment of the net flow of cryptocurrencies since the beginning of the year, influenced by significant liquidations of bitcoin.
New JPMorgan Cryptocurrency Flow Figures
JPMorgan recently revised its estimate of net flow From cryptocurrencies from $12 billion to $8 billion for the year 2024. This revision takes into account several factors, including significant bitcoin liquidations. The bank’s analysts, led by Nikolaos Panigirtzoglou, noted that this reduction is mainly due to a decrease in bitcoin reserves on exchanges over the past month. “Bitcoin liquidations by Mt. Gox creditors and sales of assets seized by the German government contributed to this decline,” they noted.
Analysts have noted a substantial decrease in the German government’s bitcoin reserves, which fell from 13,110 BTC to 9,925 BTC in a day. At the same time, the Mt. Gox rehabilitation trustee has begun bitcoin refunds to creditors, marking a major step after the massive hack in 2014.
The revised estimate includes $14 billion of net flows into crypto funds, $5 billion from Chicago Mercantile Exchange (CME) futures contracts, and $5.7 billion from crypto venture capital funds.
Cryptocurrency Market Outlook
According to JPMorgan, this revision of net flows could stabilize the market. “This revision of estimates should help stabilize the market as foreign exchange reserves decline,” the analysts specified.
JPMorgan deemed its initial forecast of $12 billion too optimistic, given the high value of bitcoin relative to its production cost and the price of gold. In June, the bank expressed doubts about the sustainability of such inflows into the cryptocurrency sector, questioning the soundness of these projections.
If JPMorgan’s prediction proves correct, it could mark a turning point for the cryptocurrency market. Stabilization and recovery since August could attract new investors and restore confidence among market participants. However, analysts remain cautious. Factors such as government regulations and technological developments will continue to play a crucial role in the evolution of the cryptocurrency market, they noted.
Maximize your Cointribune experience with our Read to Earn program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning rewards.
Click here to join “Read to Earn” and turn your passion for cryptocurrencies into rewards!
Luke Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, convey the latest technological innovations and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.