JPMorgan Chase questions sustainability of crypto inflows: Is $12 billion inflow so far this year sustainable?

JPMorgan questioned whether the pace of capital inflows into the crypto market this year can be sustained.
By 2024, $12 billion has already poured into the crypto market, with the majority of that going into spot Bitcoin exchange-traded funds (ETFs).
JPMorgan analysts led by Nikolaos Panigirtzoglou said in a June 12 report.
“Given the height of Bitcoin’s price relative to its production cost or relative to gold, we doubt that the $12 billion YTD pace will be sustained for the remainder of the year,” the analysts said.
Since spot Bitcoin ETFs were launched at the beginning of the year, approximately $16 billion has entered these investment products.
ETF inflows, along with CME futures and funds raised by crypto venture capital funds, pushed year-to-date inflows to $25 billion. But JPMorgan analysts said most of the money was not new money entering the digital asset space.
“We believe it is likely that a large amount of funds have moved from exchange digital wallets to the new spot Bitcoin ETF,” the analysts said, as evidenced by the decline in exchange Bitcoin reserves.
Since spot Bitcoin ETFs began trading, approximately 220,000 bitcoins worth approximately $13 billion have left exchange platforms.
Although Bitcoin has seen a slight decline over the past 24 hours, trading at $66,846.29 (6:05 a.m. EST), this latest drop brings the leading cryptocurrency down 6% over the past seven days.
# Bitcoin is still trading within a major inverse head and shoulders pattern – just below its all-time high.
A break above $70,000 again will be unstoppable.
Despite the correction, some analysts remain optimistic about the cryptocurrency. Anonymous analyst Jelle told his 86.4k followers in a June 14 post that Bitcoin is still “trading within a major inverse head and shoulders pattern.”
If Bitcoin can break through $70,000, “it will be unstoppable,” he added in the post. Apollo co-founder Thomas Farrar held a similar view and said the recent correction was just “noise.”
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