Since the introduction of Spot Bitcoin ETFs, there has been a continuous stream of inflow and outflow data. Despite fluctuations in Bitcoin prices, there is a noticeable increase in activity within the cryptocurrency market. A recent report from JPMorgan sheds light on these trends, revealing both positive and negative aspects.
JPMorgan’s comprehensive report on Bitcoin and other cryptocurrencies reveals that the market has seen an inflow of $12 billion so far this year, with expectations to reach $26 billion by the end of 2024. However, the report also raises some concerns about these inflows. It highlights that a significant portion of the funds came from spot Bitcoin ETFs, contributing $16 billion in inflows. This suggests a potential redistribution of funds, especially when considering the decline of 220,000 BTC on exchanges.
Despite the promising inflow figures, JPMorgan’s assessment predicts a year-end total of around $12 billion, significantly lower than the peak institutional inflows seen in the previous years. The report also emphasizes the possibility that institutional investors may operate independently from the market, as the funds entering spot Bitcoin ETFs seem to have a long-term investment strategy.
Interestingly, it is believed that the presence of spot Bitcoin ETFs in the market may prevent sharp declines in Bitcoin prices. Historically, after halving events, Bitcoin could have experienced significant corrections of up to 50%. However, this was not the case in the last halving cycle. For example, instead of dropping to $37,000, Bitcoin only fell to a maximum of $58,000 before quickly recovering to reach $70,000 levels.
As we await the outcomes of institutional flows by the end of the year, it remains to be seen how these trends will impact the cryptocurrency market. Stay updated on the latest financial and business news on COINTURK FINANCE for more insights and analysis. Remember, investing in cryptocurrencies carries high volatility and risk, so it is important for investors to conduct their own research and be cautious.