Crypto Market Rebound Expected in August, Liquidations to Finish By July-End: JPMorgan
JPMorgan predicts that crypto liquidations will decrease this month and the market will rebound from August. The bank has lowered its year-to-date crypto net flow estimate from $12 billion to $8 billion due to the high value of bitcoin relative to its production cost and the price of gold. The reduction is largely attributed to the decline in bitcoin reserves across exchanges over the past month, possibly due to bitcoin liquidations by creditors of Gemini or defunct crypto exchange Mt. Gox, or selling by the German government. The revised $8 billion estimate includes a $14 billion net flow into crypto funds by July 9, CME futures flows of $5 billion, $5.7 billion of fundraising by crypto venture capital funds year-to-date, minus a $17 billion adjustment for the rotation from wallets on exchanges to new spot bitcoin ETFs.
