Bitcoin and Crypto Closing Out Lame Quarter and One Analyst Believes More Pain Could Be in Store

Bitcoin's price fell nearly 15% in Q2, with altcoins like Solana down 30%. More downturns expected in Q3 as catalysts disappear.

: Bitcoin faced a tough Q2 with a 14% decline, closing at around $60,800. Solana, Ripple, and Dogecoin saw even larger drops. Analyst Markus Thielen predicts further declines to $55,000 in Q3 due to various pressures.

As Q2 ends, Bitcoin's price saw a significant decline of nearly 15%, settling around $60,800, a drop from its earlier $71,000 level. Ethereum, though faring better due to the spot ETF approval tailwind, also fell by 5%, while the broader CoinDesk Index plummeted by 21% driven by larger drops in altcoins like Solana, Ripple, and Dogecoin, which fell by 30%, 23%, and 42% respectively.

Positive catalysts that had previously driven Bitcoin's rise, such as the anticipation and subsequent approval of the spot bitcoin ETF, and expected interest rate cuts from the U.S. Federal Reserve, have dissipated. With inflation not easing as expected and no monetary policy changes in sight, investor enthusiasm has waned, leading to outflows from ETFs and leaving buyers on the sidelines.

Analyst Markus Thielen from 10X Research outlines ten reasons why Bitcoin might further decline to $55,000 in the near term, noting many trend-following funds might short the market. Thielen also commented on the impact of political factors and historical seasonality, pointing out that Q3 has traditionally been the weakest quarter for Bitcoin, averaging just a 5% return over the past 13 years, compared to over 60% in Q2 and Q4.