In a research report, bank analysts revealed their updated predictions for cryptocurrencies, indicating that this month could witness a slowdown in market liquidations. The Wall Street behemoth's optimistic forecast comes as cryptocurrency markets remain negative following an especially harsh June.

The price of bitcoin, which peaked in March at $73,000, sharply declined last month due to pressure from sell-offs.

The recent dumping binge by the German government and miner unloading of Bitcoin following the network incentives' halving were catalysts for the drop. The announcement of impending Mt. Gox repayments also caused the market to react significantly.

At roughly $57,330, BTC is now trading, down almost 13% from the previous month. Analysts speculate that bears may target the $50,000 region based on the fact that Bitcoin has been circling support zones in recent weeks.

JPMorgan revises down net flow estimates

JPMorgan analysts stated in their research note to investors that by the end of July, liquidations should have drastically decreased. Bitcoin and the cryptocurrency market as a whole may then start to increase.

JPMorgan, meanwhile, has downgraded its net flow forecasts to $8 billion, citing doubts over the earlier $12 billion estimate. In addition to the fact that Bitcoin is expensive in comparison to gold and its cost of manufacture, the bank's experts point to the decline in exchange reserves and increased sell-off pressure as major contributing factors.

The reduction in Bitcoin reserves may be related to liquidations, namely by creditors of Gemini or Mt. Gox. Furthermore, the majority of the 50,000 BTC that were taken from a pirate website and dumped by the German authorities were sold throughout the last several weeks.

The German government's wallet presently has about 4,925 BTC, or about $283 million, according to on-chain data. The Bitcoin was worth around $2 billion when the German authorities took it from Movie2k, and it eventually increased to $3.6 billion.