Grayscale Predicts Short-Term Decline in Bitcoin and Altcoins Will Reverse, Citing Key Events
Grayscale anticipates a rebound in Bitcoin and cryptocurrency markets over the next few months, barring major shifts in the macroeconomic landscape. Echoing market sentiment, it attributes recent downturns to Mt.Gox reimbursements, governmental Bitcoin sales by Germany and the US, and outflows from spot Bitcoin ETFs.
In their latest report, Grayscale acknowledges these pressures, highlighting a significant impact through June and July. Despite this, they emphasize that the underlying fundamentals of Bitcoin and cryptocurrencies remain largely unchanged. Looking ahead, Grayscale maintains bullish projections for the latter part of the year, asserting:
“Grayscale Research identifies multiple sources contributing to Bitcoin’s recent decline. While July has continued this trend across the cryptocurrency spectrum, we view these short-term sell-offs as temporary, with no substantial shifts in asset fundamentals observed.
We remain optimistic due to a strengthening US economy, potential Federal Reserve interest rate cuts, robust equity markets, and favorable macroeconomic conditions, all of which support Bitcoin and cryptocurrencies. Additionally, the approval of spot Ethereum ETFs could further invigorate market participation.”
Regarding Ethereum ETFs, Grayscale expects trading to commence in the third quarter of 2024, although the exact approval date remains uncertain. They anticipate these ETFs attracting new investments, potentially driving rallies in ETH and ETH-related altcoins.
Despite challenges in June, Grayscale Research maintains confidence in stable fundamentals and promising developments within the Ethereum ecosystem.
For further insights, explore their June Market Update here [link to update].
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