Bitcoin has faced a challenging second quarter in 2024, with its performance lagging behind that of stocks and bonds. According to reports from Bloomberg, Bitcoin has seen a decline of around 5% from April to mid-June, failing to keep up with global equities, fixed income, and commodities.
In contrast to the previous quarter, where Bitcoin experienced a significant 67% surge, this quarter has been a disappointment for investors. The cryptocurrency reached a peak of $73,798 in March but has struggled to regain that position in recent months.
One of the main factors contributing to Bitcoin’s lackluster performance is the fading hype around the approval of US Bitcoin exchange-traded funds (ETFs). Analysts suggest that the influx of new funds into Bitcoin ETFs has slowed down, with most recent inflows coming from existing Bitcoin holders rather than new investors.
While Bitcoin ETFs were once seen as a highly sought-after investment opportunity on Wall Street, the net flow of funds into crypto, including ETFs, is estimated to be significantly lower this year compared to previous years. JPMorgan Chase strategists noted a shift of funds from digital wallets to ETF products, predicting a more cautious approach to future inflows throughout the remainder of 2024.
Bitcoin miners have also played a role in the cryptocurrency’s performance, with many selling off their holdings to cope with the reduced profitability following the April halving. The halving slashed the block reward from 6.25 BTC to 3.125 BTC, leading to concerns about selling pressure from miners in the market.
Despite these challenges, some analysts maintain a positive outlook on Bitcoin. CryptoCon predicts a year-end price target of $91,539, while Michael Novogratz of Galaxy Digital anticipates a similar range of $100,000. Cathie Wood of Ark Invest has the most optimistic projection, setting a long-term price target for Bitcoin at an impressive $3.8 million.
While Bitcoin may have struggled in the second quarter of 2024, it remains a focal point for investors and analysts alike, with diverging opinions on its future performance and potential for growth. As the cryptocurrency market continues to evolve, only time will tell how Bitcoin and other digital assets will fare in the coming months and years.