Grayscale, a top cryptocurrency asset manager, said in its most recent market report that the cryptocurrency market might recover “in the coming months.” They base their positive outlook on what they call a “broadly supportive” macroeconomic situation. As examples, they point to the strong performance of the U.S. stock market and the possibility that the U.S. Federal Reserve will lower interest rates.
Bitcoin’s price dropped to $53,350 on the Bitstamp market earlier this Friday. This was the lowest it had been in almost six months. About $700 million worth of cryptocurrency lost value on the market in just one day.
Grayscale’s Insights On Market Challenges
Grayscale’s research team says that this strong selling pressure is caused by a number of things, such as the start of repayments to Mt. Gox, substantial Bitcoin liquidations by the U.S. and German governments, and net exits from U.S.-based exchange-traded funds in the second half of the month. Analysts also noticed that miners sold more than $100 million worth of Bitcoin in a month.
Even with these signs of weakness, Grayscale says that Bitcoin’s foundations are still strong. Bitcoin is selling at $56,433, which is an increase from its recent lows.
Looking ahead, Grayscale thinks that the approval of U.S.-based spot Ethereum exchange-traded funds later this month could have good effects because they could bring in an enormous amount of funds.
The experts also pointed out that the Consumer & Culture sector was weak, especially when it came to memecoins, which had an adverse month in July.
