Crypto Liquidity to Reduce, BTC and Crypto Market to Recapitalize: JP Morgan
Bitcoin and crypto markets are coming back
In the latest research report on Thursday, JP Morgan stated that crypto liquidity should decrease this month and the market is expected to see a huge rebound from August. The bank's previous estimate of crypto net inflows has been lowered to $8 billion from $12 billion in a revised year-on-year forecast.
The Wall Street firm expressed skepticism about the $12 billion estimate for the rest of the year for the rest of the year.
Analysts led by Nikolaos Panigirtzoglou wrote that ‘the decline in estimated net flows was largely driven by the decline in Bitcoin reserves between exchanges over the past month.'
The reason for the decrease in reserves
The decline in the bank's reserves may be attributed to Gemini's creditors or the defunct crypto exchange Mt. Gox, or the German government, is selling crypto seized from criminal activities, which it says is a reflection of bitcoin's liquidity.
The ongoing BTC sale by the German government has been a concern for the market. The acquisition of more than 2 billion dollars by the leading cryptocurrency has led to a huge sell-off in the last several weeks and shows the rising pressure of the asset price.
The bank's reduced $8 billion estimate includes $14 billion net inflows into crypto funds on July 9, Chicago Mercantile Exchange (CME) futures inflows of $5 billion, $5.7 billion in crypto venture capital funds year-to-date, minus $17. A billion fix on an exchange to move funds from a wallet to a new location that trades bitcoin. (ETF)
Bitcoin is recovering slightly
Bitcoin is currently trading at $57,820. According to CoinMarketCap, the token has fallen more than 12% in the past 30 days. However, little is changing between the positive US inflation reported today.
