Bitcoin has seen a significant setback in Q2 2024, with its price dropping nearly 15%. Earlier bullish predictions of a $100,000 target have been tempered by persistent selling pressure in April and June. Despite a brief May recovery, Bitcoin struggles below $60,000 as the quarter ends.
Current Price Trends
At the Q2 start, Bitcoin traded just under $71,000. As of now, about 60 hours before Q2 closes, Bitcoin is at $60,800, down over 14% for the quarter. Ethereum (ETH) also faced challenges, dropping 5% in the same period.
Factors Influencing Market Dynamics
Bitcoin surged from January 2023 lows to a record above $73,500 in mid-March 2024. Catalysts included anticipation and approval of a spot Bitcoin ETF, driving inflows. Expectations of U.S. Federal Reserve rate cuts in 2024 boosted sentiment, but inflation pressures persisted with no signs of easing.
Outlook for Bitcoin in Q3
Analysts like Markus Thielen from 10X Research have indicated a bearish outlook for Bitcoin heading into the third quarter. Thielen identified multiple reasons why Bitcoin's price could potentially drop further, suggesting a decline to $55,000 in the near term.
https://mail.10xresearch.co/p/10-reasons-bitcoin-fall-55000
The market sentiment remains cautious, with many trend-following funds observing similar signals and potentially increasing their short positions. Moreover, political factors, including speculation around potential U.S. presidential candidates and their stance on cryptocurrencies, continue to add uncertainty to market dynamics.
As Bitcoin and altcoins navigate through the volatile waters of the cryptocurrency market, investors remain watchful of unfolding economic and political developments that could influence future price movements. The second quarter of 2024 has underscored the challenges and uncertainties inherent in the crypto landscape, highlighting the importance of staying informed and adaptable in navigating these turbulent times.
https://coinpedia.org/news/why-is-bitcoin-price-continuing-to-fall-is-bear-taking-over-the-market/