The post Stocks and bonds are beating Bitcoin, sparking fears of a crypto slowdown appeared on BitcoinEthereumNews.com.

Bitcoin’s (BTC) robust start to 2024 has hit turbulence, raising concerns about a potential slowdown in the cryptocurrency market. After reaching an all-time high of $74,000 earlier this year, driven by the approval of spot Bitcoin exchange-traded funds (ETFs), Bitcoin’s performance in the second quarter has been underwhelming, particularly following the recent Bitcoin halving event. In the second quarter, traditional asset classes such as stocks and bonds have delivered better returns than Bitcoin. According to Bloomberg, global equities, fixed income, and commodities have all outperformed Bitcoin, which has dropped about 5%.  Bitcoin performance this quarter. Source: Bloomberg This performance disparity suggests a potential slowdown in the cryptocurrency market, as traditional assets post positive returns while Bitcoin struggles. Despite hitting a record high of $73,798 in March, Bitcoin has failed to sustain its momentum. Repeated attempts to rally back to its peak have fallen short. Factors that once fueled enthusiasm, such as inflows into U.S. Bitcoin ETFs and optimism over potential Federal Reserve interest rate cuts, no longer seem to be boosting the cryptocurrency’s performance. Shift in Bitcoin demand and market predictions Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, points out that a significant portion of subscriptions to the new U.S. Bitcoin ETFs may be from existing Bitcoin holders. This implies that not all ETF inflows represent new money entering the market, which is necessary to move the price. JPMorgan Chase (NYSE: JPM) strategists, led by Nikolaos Panigirtzoglou, have examined the demand for Bitcoin products. Bloomberg reports that these products have attracted about $15 billion in net inflows to date The strategists observed a significant shift from digital wallets on exchanges to the new spot-Bitcoin ETFs. Excluding this shift, they estimate this year’s net flow into cryptocurrency at $12 billion, which is significantly lower than the $45 billion…

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Filed under: News - @ June 15, 2024 12:30 pm