These past couple of weeks have been tough for the crypto market, particularly the world’s most valuable cryptocurrency, Bitcoin. However, analysts over at JPMorgan believe that the trend will revert next month and cause the crypto market to rebound.
After reaching an all-time high price in March at $73,737.94 per coin, Bitcoin has embarked on a steady downward trajectory that caused it to dip below $60K. Various factors played a part in the slide, including Bitcoin liquidations by the German government, which sold off Bitcoin seized from criminals, and by creditors of defunct crypto exchange Mt. Gox, who received a portion of their Bitcoin holdings after more than a decade.
JPMorgan predicts that such liquidations will become less frequent in the near future, adjusting their estimation of the year-to-date crypto net flow from $12 billion to $8 billion.
“The reduction in the estimated net flow is largely driven by the decline in bitcoin reserves across exchanges over the past month,” JPMorgan’s analysts wrote in a note sent to clients.
With a slower liquidation frequency, Bitcoin price should once again go up.
“We continue to look for a crypto market rebound from August onwards,” JPMorgan analysts said.
Bitcoin is yet to return to the $60K mark, but it is getting close, having traded around $58,500 on Saturday.