JPMorgan's August Cryptocurrency Forecast: The Wind Will Reversal!
Banking giant JPMorgan shared a report on the cryptocurrency market in August.
In their current report, JPMorgan analysts led by Nikolaos Panigirtzoglou shared that the cryptocurrency market will recover starting from August.
Analysts predict that the decline in liquidity will gradually end from this month. The bank also lowered its annual cryptocurrency flow forecast to $8 billion from $12 billion previously.
Focusing on the cost of producing 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 decreasing
Although it is claimed that the number of Bitcoins on exchanges has decreased last month and this month, the atmosphere of fear created by Mt.Gox and the German government is considered the reason for this.
The decline in the number of Bitcoins on exchanges is interpreted as a positive factor for the recovery:
The decline in estimated net flows is largely due to a decrease in Bitcoin reserves on exchanges over the past month.