Bitcoin is down 20% in the last 30 days, but financial giant JPMorgan doesn’t expect the slump to last long.

“We continue to look for a crypto market rebound from August onwards,” JPMorgan analysts said in their latest Flows and Liquidity report, released on Wednesday.

The group of analysts, led by managing director Nikolaos Panigirtzoglou, blamed Bitcoin’s performance on heavy selling from Gemini creditors and the German government, as well as on fears stemming from Mt. Gox creditors receiving their own repayments soon.

Crypto exchange Gemini credited $940 million to distressed Gemini Earn customers in May. Earn customers saw their funds trapped in 2022 when crypto lending firm Genesis, a partner of the program, declared bankruptcy in January 2023.

But Gemini pulled off a 100% recovery rate and repaid its clients in kind, meaning that customers who lent one Bitcoin to Earn received one Bitcoin back.

Meanwhile, the German government has liquidated 32,000 Bitcoin, worth $1.9 billion, on the open market over the past three weeks, according to market maker Wintermute. It now has less than $900 million left to sell.

Collapsed crypto exchange Mt. Gox, finally, will soon distribute 142 000 Bitcoin to creditors. It’s a colossal amount, but there are reasons to believe creditors won’t try to redeem the $8.2 billion in one go.

“These liquidations will subside after July,” JPMorgan said, which is why the firm expects a rebound later on.

JPMorgan also estimated that digital assets had received $8 billion in inflows this year so far — a 33% markdown from its mid-June estimate of $12 billion in inflows.

In comparison, crypto received roughly $15 billion in inflows in 2023, $40 billion in 2022, and $45 billion in 2021.

The calculations were made based on net inflows into crypto funds, flows into CME crypto futures contracts, and fundraising by crypto venture-capital funds.

Capital rotation from crypto exchanges into other funds was also taken into account.

Tom Carreras is a markets correspondent at DL News. Got a tip about Bitcoin? Reach out at tcarreras@dlnews.com