Grayscale Research Report: The fundamentals of crypto assets remain unchanged, and the valuation is expected to recover in the coming months

BlockBeats reports that on July 2, Grayscale Research released a report stating that sell-offs from various sources in June have put more widespread pressure on the Bitcoin and cryptocurrency markets. However, Grayscale Research believes that unless there is a significant shift in macroeconomic prospects, the fundamentals of this asset class have hardly changed and it is expected that cryptocurrency valuations may recover in the coming months.

Grayscale Research believes that actual and anticipated selling pressures from multiple sources led to Bitcoin's decline this month. In turn, Bitcoin's weakness seems to have spread to other areas of cryptocurrency. The main new sources of selling pressure include:

"1" The trustee of Mt Gox's bankruptcy assets announced on June 24th that repayment for Bitcoin and BCH will begin "from July 2024". As of now, it holds $8.9 billion worth of bitcoin. There is uncertainty about whether creditors will convert their earnings into legal currency and within what timeframe.
"2" German Government: German government agencies have begun liquidating Bitcoins confiscated in 2013. According to data provider Arkham Intelligence, wallets associated with the German government sent nearly 4,000 bitcoins (worth approximately $220 million) to exchanges in June.
"3" U.S Government: On June 26th ,the US government sent 3,940 BTC ($240 million) seized from wallets related to convicted drug dealers to Coinbase Prime Deposit.The last confirmed sale by the US government was in March 2023 when they sold off 9,861 BTC valued at $216 million then.
“4” Spot Bitcoin ETFs in United States: After net inflows during May and early June these products saw net outflows totaling $581 million during late-June.[5]Bitcoin miners continue reducing holdings: according to Glassnode data,miners sold around1560 bitcoins(approximately$100million)during past30days.

On another note,it has been reported that listed company Microstrategy purchased nearly 12,000 bitcoins (worth $786 million) in mid-June, which may have supported Bitcoin's price. Although these short-term capital flows may temporarily put pressure on the price of Bitcoin, with consumer price inflation further slowing down,the market expects the Federal Reserve to cut interest rates further this year and next year. With economic growth, potential Fed rate cuts and active stock markets,the macroeconomic backdrop still broadly supports the crypto asset class.