JPMorgan's August Forecast for Cryptocurrencies: The Wind Will Reverse!

Banking giant JPMorgan shared a report for August for the cryptocurrency market.

In their current report, JPMorgan analysts led by Nikolaos Panigirtzoglou shared that the cryptocurrency market will recover starting from August.

Analysts predicted that the declines and liquidity clearings would decrease and end as of this month. The bank also lowered its year-to-date crypto net flow forecast to $8 billion from $12 billion previously.

Focusing on the production cost of Bitcoin (BTC) or how high it is compared to the price of gold, the bank noted that it is skeptical that the previous estimate of $ 12 billion will continue for the rest of the year.

The number of Bitcoins on exchanges is falling

While it was stated that the number of Bitcoins in the exchanges decreased last month and this month, the climate of fear created by Mt.Gox and the German government was cited as the reason for this.

The decline in the amount of Bitcoin on exchanges was interpreted as a positive factor for recovery:

The decrease in estimated net flows is largely due to the decline in Bitcoin reserves on exchanges over the past month.

Stay tuned for new information