Crypto liquidations are expected to decrease this month, and the market is predicted to bounce back from August onwards, according to a report from JPMorgan (JPMJPM) released yesterday.
The bank has lowered its estimate of how much money has flowed into the crypto market this year from $12 billion to $8 billion. JPMorgan doubts that the earlier estimate of $12 billion would continue for the rest of the year because the price of Bitcoin (BTC) is quite high compared to its production cost or the price of gold.
“The reduction in the estimated net flow is largely driven by the decline in bitcoin reserves across exchanges over the past month,” said analysts led by Nikolaos Panigirtzoglou.
Combination of 3 Large Sell-offs are Holding Prices Down...The sell off's by creditors of Gemini, the now-closed crypto exchange Mt. Gox, and the German government, which has been selling crypto it seized from criminal activities, increased supply, and held prices down. But all these sell off's are a one time thing, and have either recently finished selling or will be completed soon.
JPMorgan’s reduced estimate of $8 billion accounts for $14 billion in new investments into crypto funds by July 9, $5 billion from Chicago Mercantile Exchange (CME) futures, and $5.7 billion raised by crypto venture capital funds this year. These amounts are then adjusted by subtracting $17 billion, which accounts for the shift from wallets on exchanges to new spot bitcoin exchange-traded funds (ETFs).-------Author: Mark PippenLondon NewsroomGlobalCryptoPress | Breaking Crypto News
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