Following an incredible start to 2024 with the acceptance of Bitcoin ETFs, the price of Bitcoin surged all the way to a new all-time high of $74,000. But the performance of the BTC price has been lacklustre, especially in Q2 after the Bitcoin halving event.
One of the leading causes of the BTC price’s inability to break over the formidable resistance of $69,000–$70,000 is the significant capitulation of Bitcoin miners. The price of Bitcoin has now plummeted by an additional 1.26% as of the time of writing and is trading at slightly under $66,000. Experts in the cryptocurrency market predict that before Bitcoin’s price starts to rise again, it may underperform for an additional three months.
Bonds, Stocks, and Bitcoin
In the second quarter, bonds and stocks outperformed Bitcoin in terms of returns while capturing the majority of the market’s crypto surge. According to the Bloomberg index, in Q2, global stocks, bonds, and commodities all outperformed Bitcoin. All conventional asset groups have had gains in Q2 thus far, but Bitcoin has seen a 5% decline over this time.
According to the Bloomberg report, investors’ positive emotions after the introduction of spot Bitcoin ETFs and their anticipation of rate reductions helped Bitcoin. Still, as time goes on, these spirits appear to be flagging.
However, the massive financial firm JPMorgan has said that it anticipates net flows into cryptocurrency, including ETFs and venture capital portfolio fundraising, to be approximately $12 billion. This would still be less than the $40 billion in inflows during the 2022 crypto winter, as well as the $45 billion inflows during the 2021 crypto bull run.
Consolidation of Bitcoin Prices Will Last for Three More Months
Rekt Capital, a well-known cryptocurrency analyst, said that the price of Bitcoin is still encountering resistance above the $70,000 area high. The largest cryptocurrency in the world has been stabilizing over the last three months, bouncing between $60,600 and $71,500, inside its predetermined range. The price of BTC will likely continue to consolidate for an additional three months based on historical chart trends.
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
Rekt Capital said in another post that investors would benefit from this protracted period of consolidation, which would ultimately ensure a long-term bull run.
