JPMorgan Questions The Sustainability Of Crypto Inflows After $12 Billion Floods In So Far This Year

JPMorgan
has
questioned
whether
the
pace
of
inflows
into
the
crypto
market
this
year
can
be
maintained.

So
far
in
2024,
$12
billion
has
flooded
into
the
crypto
market,
the
majority
into

spot
Bitcoin
ETFs
(exchange-traded
funds),


JPMorgan

analysts
led
by
Nikolaos
Panigirtzoglou
said
in
a
Jun.
12
report.

“Given
how
high
bitcoin
prices
are
relative
to
its
production
cost
or
relative
to
gold,
we
are
skeptical
that
the
YTD
pace
of
$12bn
will
continue
into
the
remainder
of
the
year,”
the
analysts
said.

JPMorgan
Says
Much
Of
The
Inflows
Not
New
Money

Since
spot
Bitcoin
ETFs
launched
at
the
start
of
the
year,
around
$16
billion
has
entered
these
investment
products.

ETF
inflows
combined
with
CME
futures
and
funds
raised
by
crypto
venture
capital
funds
pushed
the
year-to-date
inflows
to
$25
billion.
But
the
JPMorgan
analysts
say
the
majority
of
this
capital
is
not
new
money
entering
the
digital
asset
sector. 

“We
believe
there
has
likely
been
a
significant
rotation
away
from
digital
wallets
on
exchanges
to
the
new
spot
bitcoin
ETFs,”
the
analysts
said.
This
is
evident
in
the
decrease
in
exchanges’
BTC
reserves

Since
spot
Bitcoin
ETFs
started
trading,
about
220k
BTC
coins
worth
around
$13
billion
have
left
exchange
platforms.

Analysts
Still
Bullish
On
BTC
Despite
Weekly
Drop 

Bitcoin
suffered
a


minor
loss

over
the
past
24
hours
to
trade
at
$66,846.29
as
of
6:05
a.m.
EST.
This
latest
drop
pushed
the
leading
crypto
down
6%
over
the
past
7
days.

#Bitcoin
is
still
trading
inside
this
major
inversed
head
&
shoulders
pattern
—
right
below
all-time
highs.

Push
above
$70,000
again,
and
there
will
be
no
stopping
it.

pic.twitter.com/vu3ohn5zLQ

—
Jelle
(@CryptoJelleNL)

June
14,
2024

Despite
the
correction,
some
analysts
are
still
very
bullish
on
the
crypto.
Pseudonymous
analyst
Jelle
told
his
86.4k
followers
on
X
in
a
Jun.
14
post
that


BTC

is
still
trading
inside
of
a
“major
inverted
head
and
shoulders
pattern.” 

If
BTC
is
able
to
break
above
$70k,
“there
will
be
no
stopping
it,”
he
added
in
the
post.
Apollo
co-founder
Thomas
Fahrer
shares
a
similar
sentiment,
and


said

that
the
recent
correction
is
just
“noise.” 

Related
Articles: