Stablecoins, Miners Outperform as $18B Gets Wiped Out From Crypto in June: JPMorgan

Spot bitcoin ETFs saw their second worst month since launching in the U.S., with an estimated $662 million of net outflows, the report said.

Cryptocurrency markets saw a sharp sell-off in June, with a total of $18 billion being wiped out, as per a research report by JPMorgan (NYSE:JPM) on Monday.

According to the report, the total cryptocurrency market capitalization fell by 8% in June to approximately $2.25 trillion, surrendering the majority of the gains seen in May.

“Tokens, decentralized finance (DeFi) and non-fungible tokens (NFTs) all saw market cap contraction in June,” wrote analyst Kenneth Worthington.

The move comes in contrast to traditional markets, with the S&P 500 index gaining 4% for the month and the tech-heavy Nasdaq climbing 6%. In comparison, the CoinDesk 20 index ({{CD20}}) fell nearly 20% in June.

However, it wasn’t all doom and gloom for the digital asset sector. Stablecoins outperformed the rest of the crypto ecosystem in June, and their market capitalization was either flat or saw a slight increase, said the report, with the appreciation being driven mainly by tether (USDT).

Bitcoin miners were another outlier. The total market capitalization of the publicly listed bitcoin (BTC) miners grew by 19% as these companies benefitted from the gains driven by “artificial intelligence-related power use cases.”

Core Scientific (NASDAQ:CORZ) recently inked a 12-year, 200 megawatt (MW) deal with cloud computing firm CoreWeave to provide AI-related infrastructure, which triggered a re-rating of the sector and a wave of mergers and acquisitions.

The bank noted that the data suggests that daily spot crypto trading volumes fell as much as 18% versus the prior month, and “it now appears that March 2024 was the peak for the crypto ecosystem in the current cycle both from a valuation and volume perspective.”

Finally, JPMorgan highlighted that spot bitcoin ETFs saw their second-worst month in terms of flows since launching, and the bank estimates that the 10 U.S. spot ETFs saw $662 million of outflows over the month.

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