When liquidations end, Bitcoin bull market begins
Despite recent unfavorable patterns, JP Morgan remains positive on Bitcoin. The bank has set a schedule for BTC liquidations and predicted a market resurgence.
In a Wednesday research paper, JP Morgan predicted that BTC liquidations should cease in July, launching a robust bull market as sell-offs fade. The bank expects a market rebound, but it doubts the durability of its year-to-date Bitcoin inflows.
JP Morgan has drastically cut its year-to-date crypto net flow from $12 billion to $8 billion. Spot Bitcoin ETFs have driven crypto market inflows this year.
Bitcoin's high price compared to its manufacturing cost and gold's price also irks JP Morgan. The recent fall in Bitcoin reserves across exchanges may have contributed to the bank's predicted year-to-date net flow loss, according to crypto researcher Nikolaos Panigirtzoglou.
Over the last month, Bitcoin reserves have fallen due to selling pressures and significant BTC liquidations by Mt Gox creditors and the German government. As said, JP Morgan expects current BTC sell-off to stop in July, resulting in a strong Bitcoin rally in August.
Many crypto experts and community members believe Bitcoin's recent price rise represents the continuation of a robust bull market, following the bank's projections.
Crypto analyst ‘CryptoYoddha’ on X (previously Twitter) stated that the German government planned to liquidate their remaining BTC before the bull run. The expert said Bitcoin remains positive despite the German government's aggressive selling and market volatility.
It was stated in June that Mt Gox will repay creditors in July. Creditors are relieved that the collapsed Bitcoin exchange has begun paying, but they worry about Bitcoin sell-offs.
With creditors progressively getting part of Mt Gox's 142,000 BTC payment worth $9 billion, market worries are reasonable since a broad Bitcoin dump would affect the cryptocurrency's price.
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