After a staggering start to 2024 with the approval of the spot Bitcoin ETFs, the Bitcoin price rallied all the way hitting its new all-time high of $74,000. However, the BTC price performance has been underwhelming particularly during Q2 following the bitcoin halving event.
Strong Bitcoin miner capitulation has been one of the major reasons that the BTC price has been struggling to surge past the strong resistance of $69,000-$70,000. As of press time, the BTC price has dropped by an additional 1.26% and is currently trading at just under $66,000. Crypto market analysts believe that we could be seeing another three months of Bitcoin underperformance before it resumes the uptrend.
Bitcoin vs Stocks vs Bonds
During the second quarter, stocks and bonds delivered better returns than Bitcoin while taking over the major crypto boom of the market. As per the Bloomberg indicator, commodities, bonds, and global stocks were all ahead of Bitcoin during Q2. While all the traditional asset classes gave positive returns during Q2 so far, Bitcoin has dropped by 5% in this period.
The Bloomberg report noted that Bitcoin benefited from the animal spirits among investors following the launch of the spot Bitcoin ETFs and the expectations of the rate cuts. However, as things proceed further, these spirits seem to waning down.
On the other hand, banking giant JPMorgan has stated that it expects the net flows in crypto, including ETFs and fundraising by venture capital portfolios to be around $12 billion. However, this would be still lower than the $45 billion inflows during the crypto bull run of 2021 and the $40 billion in inflows, despite the crypto winter of 2022.
BTC Price Consolidation to Continue for Three More Months
Popular crypto analyst Rekt Capital stated that the BTC price continues to face resistance at the range high of $70,000. For the past three months, the world’s largest cryptocurrency has been consolidating within its established range, oscillating between $60,600 and $71,500. As per the historical chart patterns, it is very likely that the BTC price could continue to consolidate for another three months.
Bitcoin rejects from the Range High resistance again
Bitcoin has been consolidating within this range for 3 months now, zig-zagging between $60600-$71500 in a sinusoidal manner
History suggests this consolidation could go on for another 3 months$BTC #Crypto #Bitcoin https://t.co/aIEmA0QFrq pic.twitter.com/04brNmNejW
— Rekt Capital (@rektcapital) June 14, 2024
In another post, Rekt Capital stated that this long period of consolidation would be actually beneficial to investors, thereby ensuring a sustained bull run in the long run.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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