From Investing.com

July 11, 2024 06:34:00 AM:

Goldman Sachs revised the estimated net inflows into digital assets down from $12 billion to $8 billion year-to-date, attributing the adjustment to various contributing factors over the past month.

The new $8 billion figure accounts for a $14 billion net inflow into crypto funds, a $5 billion flow impulse from CME futures, and $5.7 billion in fundraising by crypto venture capital funds.

A $17 billion adjustment was made due to a shift from digital wallets on exchanges to spot Bitcoin ETFs, driven by factors like cost-effectiveness and regulatory protection.

Bitcoin reserves across exchanges decreased by 0.29 million bitcoins or $17 billion by July 9, signaling a move away from exchange wallets to other investment options.

Goldman Sachs expressed surprise at the rapid decline in estimated net inflows, citing high Bitcoin prices and value compared to gold as factors contributing to the reduction.

The decrease in Bitcoin reserves on exchanges is linked to liquidations by entities like Gemini, Mt. Gox, and the German government, selling Bitcoin seized in criminal activities.

Despite the downward revision, Goldman Sachs foresees a rebound in the cryptocurrency market from August onwards, expecting a decrease in liquidations after July.

Read more at Investing.com: Goldman revises digital asset inflow estimate to $8bn from $12bn YTD By Investing.com