Bitcoin stabilizes around $57,000, with forecasts of an August rebound from JPMorgan. Germany’s liquidation is tapering, and U.S. Bitcoin ETFs are seeing substantial inflows. Bitcoin-related stocks like MicroStrategy and Iris Energy also show positive movement, while the SEC might ease crypto custody guidelines, paving the way for broader adoption.
Bitcoin’s value remains stable within the $57,000 range, but analysts from JPMorgan predict a potential upswing in August as they believe the negative trend is nearing its end. Despite a brief rise following positive inflation data, Bitcoin recently hovered just above $58,000, experiencing minimal fluctuations over the past day. As demand and supply forces seem to balance each other out, the cryptocurrency’s price continues to remain lodged firmly in place.
A contributing factor to Bitcoin’s price stagnation is Germany’s ongoing sales of the cryptocurrency, which appear to be tapering off. The German government currently retains 3,846 BTC, valued at approximately $222 million, while unloading nearly $3 billion since early June, according to Arkham Intelligence. Yet, Coinbase Germany’s Managing Director noted that the volume sold during the liquidation is significantly less compared to typical market activity.
Moreover, U.S. spot Bitcoin exchange-traded funds (ETFs) have been very active, attracting around $79 million on Thursday alone, pushing total inflows for the week beyond $737 million. JPMorgan analysts suggest that this recent downward pressure on Bitcoin prices is likely to fade, hinting at a recovery in the coming weeks, particularly in August.
On the stock front, MicroStrategy (MSTR) witnessed approximately a 5% uptick after announcing a 10-for-1 stock split. Meanwhile, shares of Bitcoin miner Iris Energy (IREN) surged by 10%, as analysts quickly rallied to support the company following a negative report that triggered a sharp decline in stock value. Additionally, shares of Block (SQ) rose nearly 3% after analysts valued their contract for mining hardware at about $300 million, boosting Core Scientific’s (CORZ) stock, which gained more than 2%.
In regulatory news, the U.S. Securities and Exchange Commission (SEC) may loosen its stringent SAB 121 guidelines concerning the custody of cryptocurrency assets. If true, this change could pave the way for broader acceptance and integration of crypto assets within traditional financial frameworks, as noted by Bloomberg Law.
Bitcoin’s current price remains stable in the $57,000 range, with predictions for a potential rebound in August by JPMorgan analysts. The selling pressure from the German government is expected to decrease, and rising inflows into U.S. Bitcoin ETFs signal growing interest. Stocks linked to Bitcoin, such as MicroStrategy and Iris Energy, are also witnessing positive movement. Furthermore, regulatory shifts from the SEC may enhance the adoption of cryptocurrencies, setting the stage for changes in the market landscape.
Original Source: www.investopedia.com
