Markets
Cryptocurrency Market Set to Recover Soon, Says Grayscale
Alex Dovbnia
Grayscale researchers cited several reasons why they remain bullish despite the recent crypto carnage
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In a new market updateThe research team at leading cryptocurrency asset manager Grayscale has predicted that the cryptocurrency market will be able to recover from the most recent crash “in the coming months.”
Its optimistic outlook is based mainly on a “broadly favorable” macroeconomic context. Grayscale mentioned the possibility of a rate cut by the US Federal Reserve as well as the prosperity of the US stock market.
As reported by U.TodayThe price of Bitcoin crashed to $53,350, its lowest price in nearly six months, earlier Friday on the Bitstamp exchange. Nearly $700 million worth of cryptocurrency was wiped out in just 24 hours.
Grayscale’s research team has identified several sources of this extreme selling pressure. They include the start of Mt. Gox Refundsthe liquidation of Bitcoin holdings by the US and German governments as well as net outflows from US-based exchange-traded funds in the second half of the month.
Additionally, the company’s analysts pointed out that miners sold more than $100 million worth of BTC in a month.
Despite these bearish headwinds, Grayscale believes that Bitcoin’s fundamentals remain unchanged.
At press time, the cryptocurrency was trading at $56,433 after registering a relief bounce.
Grayscale’s research team also predicted that U.S.-based Ethereum spot exchange-traded funds, which are awaiting final approval, will expected which will take place this month, could attract “significant” net inflows.
Analysts also highlighted weakness in the memecoin-rich consumer and culture sector, which ended up being the biggest underperformer in July.
About the Author
Alex Dovbnia
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has written over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.