News
Grayscale Predicts Crypto Market to Rebound Soon
Alex Dobnya
Grayscale researchers listed several reasons why they remain bullish despite the recent crypto carnage
Read U.TODAY on
Google News
In a new market updateThe research team at leading crypto asset manager Grayscale predicted that the cryptocurrency market would be able to recover from the most recent crash “in the coming months.”
His optimistic outlook is based primarily on the “broadly supportive” macro backdrop. Grayscale cited the possibility of U.S. Federal Reserve rate cuts and the buoyant U.S. stock market.
AS reported by U.TodayBitcoin price plummeted to $53,350, its lowest price point in nearly six months, early 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. These 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.
In addition, the company’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 is trading at $56,433 after posting a relieving bounce.
Grayscale’s research team also predicted that U.S.-based spot 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 & Culture sector, which is heavily focused on memecoins, which proved to be the biggest underperformer in July.
About the author
Alex Dobnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything from price analysis to Blockchain disruption. Alex has written over 1,000 stories for U.Today, CryptoComes, and other fintech media. 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.