Bitcoin (BTC) Can Underperform Stocks And Bonds for Another Three Months, Here’s Why

Bhushan Akolkar
June 15, 2024
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Is Bitcoin Price Correction Over?

Highlights

  • Strong miner capitulation has been a significant factor, preventing BTC from surging past the $69,000-$70,000 resistance range.
  • During the Q2, dlobal stocks, bonds and commodities delivered better returns than Bitcoin.
  • As per historical trend, the Bitcoin price consolidation can continue for another three months.

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.

Courtesy: Bloomberg

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.

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.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.