The crypto market is poised for a recovery starting in August, according to a recent report. This positive outlook comes after a period of uncertainty and volatility in the market.
One key factor contributing to this anticipated rebound is the decrease in bitcoin reserves across exchanges. This decline can be attributed to various factors such as liquidations by Mt. Gox creditors, actions taken by Gemini, as well as selling activities by the German government.
JPMorgan has adjusted its year-to-date net flow estimate for crypto from $12 billion to $8 billion. This revision reflects the changing dynamics within the market and the impact of recent events on investor sentiment.
The Wall Street firm remains cautious about the sustainability of the previous $12 billion estimate for the remainder of the year. Factors such as bitcoin’s valuation relative to production costs and gold prices are being closely monitored to gauge market trends.
It is important to note that the reduced estimate of $8 billion includes various components such as net flows into crypto funds, CME futures flows, fundraising by crypto venture capital funds, and adjustments for the emergence of new spot bitcoin exchange-traded-funds.
Overall, the crypto industry is showing resilience and adaptability in the face of challenges. By staying informed and monitoring market trends, investors can make informed decisions to navigate the evolving landscape of digital assets.
