JPMorgan Chase: Cryptocurrencies have seen net inflows of $12 billion this year! But Bitcoin prices are on the high side

This site (120bTC.coM): According to a report by The Block, JP Morgan analysts expressed doubts about the sustainability of strong cryptocurrency inflows so far this year, citing reasons It’s because the current Bitcoin price is on the high side.

Net crypto inflows so far this year are $12 billion

JPMorgan Chase’s latest report pointed out that the cryptocurrency market has seen large inflows driven by Bitcoin spot exchange-traded funds so far this year. , currently up to 16 billion U.S. dollars. If coupled with the inflows from CME futures and crypto venture capital fund financing, the total inflow of cryptocurrency has reached 25 billion U.S. dollars so far this year. However, JPMorgan Chase believes that not all of these represent new funds entering the market.

Many investors may have switched from crypto wallets on exchanges to Bitcoin spot ETFs due to cost-effectiveness, liquidity, and regulatory advantages. Citing data from CryptoQuant, analysts said the shift was clear as exchanges’ Bitcoin reserves fell by 220,000 Bitcoins, or $13 billion, since the ETF’s launch in January. After adjusting for this figure, net inflows into crypto assets so far this year are about $12 billion.

ETF 16 billion + CME futures and crypto venture capital 9 billion - exchange 13 billion = 12 billion US dollars

##Bitcoin price is high, capital inflow is possible Unsustainable

Although it is estimated that there will be a net inflow of US$26 billion by the end of the year at this rate, JPMorgan Chase is skeptical about whether this growth rate can be maintained: given that the price of Bitcoin is relative to its production The cost may be high relative to the price of gold, and we are skeptical that the year-to-date growth rate of $12 billion can be sustained through the end of the year.

JPMorgan last month raised its estimate of Bitcoin production costs to $45,000 from a previous estimate of $42,000. At the time of writing, the price of Bitcoin was $66,500.

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