American international financial company JP Morgan maintained its bullish stance on Bitcoin Price Outlook despite recent downward trends. The bank announced a timetable for completion BTC liquidations ongoinganticipating a subsequent market rebound.

JP Morgan predicts bitcoin market rebound in August

In a research report published on Wednesday, JP Morgan suggested that BTC liquidation should cease in July this year, predicting the beginning of robust bull market as sell-off-induced downtrends recede. While the bank believes market recovery is inevitableis also skeptical about the sustainability of the high Bitcoin inflows into crypto assets this year.

First, JP Morgan revised and significantly reduced its net crypto flow to date from $12 billion to $8 billion. So far this year Spot Bitcoin ETF were the main driving force behind the significant inflow of funds into the cryptocurrency market.

JP Morgan’s skepticism is also due to the high price of bitcoin in relation to its production costs and gold priceThe bank’s cryptocurrency analyst Nikolaos Panigirtzoglou suggested that the bank’s reduction in its estimated year-to-date net flow was also due to the recent bitcoin reserves decline on the stock exchanges.

This decrease in Bitcoin reserves over the past month was likely the result of ongoing selling pressure and widespread BTC liquidations by Mt Gox Creditors and the German government. As mentioned earlier, JP Morgan predicted that this BTC sell-off would officially end in July, leading to a significant bullish rally for bitcoin in August.

In response to the bank’s predictions, many cryptocurrency analysts and community members he suggested that the recent augment in Bitcoin price is a continuation of the robust bull market.

Cryptocurrency Analyst Identified as ‘CryptoYoddha’ on X (formerly Twitter) revealed that the German government was preparing to sell the remaining BTC just before the bull run. Despite aggressive selling by the German government and subsequent market turmoil, the analyst noted that Bitcoin still appears to be on an uptrend.

About the ongoing BTC liquidations

Earlier in June, Mt Gox announced that it would make repayments to creditors in July. While the defunct Bitcoin exchange’s decision to begin the repayment process is good news for creditors, there is also hidden worries regarding a potential Bitcoin sell-off.

Because creditors constantly receive a share Payment 142,000 BTC via Mt Gox worth around $9 billion, the market’s concerns are somewhat justified, as a widespread decline in the value of Bitcoin would have a significant impact impact on cryptocurrency priceIn addition to Mt Gox’s significant Bitcoin redistribution plans, the German government has also been seen selling almost 100% of its Bitcoin holdings were confiscated from criminals.

These significant cryptocurrency liquidations had a major impact on the price of Bitcoin, causing stern price drops which have significantly delayed Bitcoin’s anticipated growth. Cryptocurrency analyst identified as ‘Rekt Capital’ indicated that the Bitcoin bull market based on standard halving cycles has already grown by 40.1%.

Featured image created with Dall.E, chart from Tradingview.com