Markets
Cryptocurrency Market Expected to Recover Soon by Grayscale
Alex Dovbnya
Grayscale researchers cited several reasons why they remain bullish despite the recent crypto carnage
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In a new market to updateThe research team at leading crypto asset manager Grayscale has predicted that the cryptocurrency market will be able to recover from its most recent dip “in the coming months.”
Its bullish outlook is largely based on the “broadly favorable” macro backdrop. Grayscale cited the possibility of rate cuts from the U.S. Federal Reserve as well as the thriving U.S. stock market.
As reported by U.TodayBitcoin’s price fell to $53,350, its lowest in nearly half a year, early Friday on the Bitstamp exchange. About $700 million worth of the cryptocurrency was wiped out in just 24 hours.
Grayscale’s research team has identified several sources of this extreme selling pressure. These include the initiation of Mt. Gox Refundsthe liquidation of Bitcoin holdings by the US and German governments, as well as net outflows recorded by US-based exchange-traded funds in the second part of the month.
Additionally, the firm’s analysts pointed out that miners sold over $100 million worth of BTC in a month.
Despite these bearish headwinds, Grayscale believes that Bitcoin’s fundamentals remain unchanged.
At the time of writing, the cryptocurrency was trading at $56,433 after registering a recovery.
Grayscale’s research team also predicted that US-based Ethereum exchange-traded funds, whose final approval is expected which will take place this month, will be able to attract “significant” net inflows.
Analysts also highlighted weakness in the Consumer and Culture sector, which is heavily based on memecoins and ended up underperforming the most in July.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to the burgeoning industry — from price analysis to blockchain disruption. Alex has authored over 1,000 stories for U.Today, CryptoComes, and other fintech media outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets, and can be reached at alex.dovbnya@u.today.