The second quarter of 2024 has been a tough one for the Bitcoin market, with prices dipping nearly 15%. Bitcoin, which started the quarter close to $71,000, is now trading around $60,800. Altcoins performed even worse, with the CoinDesk Index dropping over 21%. The price dip can be attributed to several factors, including the fading of positive catalysts like the spot bitcoin ETF approval and the anticipation of interest rate cuts which have not materialized. Analysts like Markus Thielen of 10x Research believe the downward trend may continue, predicting a possible drop to $55,000. He cites a number of factors, including trend-following funds potentially shorting Bitcoin, the potential for a more pro-crypto Democratic nominee in the upcoming US presidential election, and the historically weak performance of Bitcoin in the third quarter. Despite this gloomy outlook, there are still some who are bullish on Bitcoin, with its long-term potential remaining strong.
Key Points:
Bitcoin price dropped almost 15% in Q2, now trading around $60,800.
Altcoins fared even worse, with the CoinDesk Index dropping over 21%.
The decline can be attributed to fading catalysts like the spot bitcoin ETF approval and the anticipation of interest rate cuts which have not materialized.
Analysts predict further decline in Q3, with some even predicting a drop to $55,000.
This outlook is based on factors like trend-following funds potentially shorting Bitcoin, a possible more pro-crypto Democratic nominee, and the historically weak performance of Bitcoin in the third quarter.
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