Bitcoin to Resume Bull Trend Next Month, According to JPMorgan

JPMorgan's latest research report indicates a projected slowdown in crypto liquidations this month, with expectations of a market rebound starting next month.

The world’s largest private bank has revised its year-to-date estimate for net crypto flows down to $8 billion from the previous forecast of $12 billion.

This adjustment reflects concerns over Bitcoin’s valuation compared to production costs and gold prices, casting doubt on sustaining the earlier projected flow for the remainder of the year.

The decrease in estimated net flows primarily stems from a recent decline in Bitcoin reserves held across exchanges, according to analysts led by Nikolaos Panigirtzoglou.

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This reduction in reserves is likely linked to Bitcoin sell-offs by creditors of Gemini and the defunct crypto exchange Mt. Gox, as well as sales by the German government liquidating seized crypto assets from criminal activities.

JPMorgan’s updated estimate of $8 billion encompasses $14 billion flowing into crypto funds by July 9, $5 billion from Chicago Mercantile Exchange (CME) futures flows, and $5.7 billion raised by crypto venture capital funds year-to-date.

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Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.