Market expectations surrounding Bitcoin’s potential for new highs might actually hinder its immediate rise, yet analysts suggest there could still be surprising interest in Ethereum.
According to Brian Quinlivan from Santimento, there’s hope that Bitcoin can become a trending topic again on social media.
Bitcoin’s Close Call Could Spark a Surge
Quinlivan indicated that the persistent doubts about Bitcoin suggest its previous record highs don’t tend to hold. However, with Bitcoin’s latest values dipped below historic peaks, it’s possible that sentiments could rally enough to push Bitcoin above its current levels.
At the time of writing, Bitcoin was priced at $109,679, only 2.1% shy of its record high of $111,970 from May 22.
“It wouldn’t be unexpected for some smaller traders, feeling frustrated after several near-misses, to turn pessimistic on BTC, which could deflate the current optimism,” Quinlivan noted.
The fear and greed index, which gauges overall market sentiment, was reading 72 out of 100, indicating a state of greed.
Dr. Sean Dawson, research director, mentioned that Bitcoin might experience some downturn during the third quarter of this year.
Historically Weak Q3 for Bitcoin
Looking back to 2013, the third quarter has been known to deliver Bitcoin’s weakest average returns of 6.03%, while the following quarter brings an impressive average of 85.42%, according to data from Coinglass.
Dawson emphasized macroeconomic uncertainty as a considerable concern for investors. He pointed out that despite pressure to lower interest rates, the Federal Reserve seems inclined to keep rates stable, which could diminish Bitcoin’s attractiveness for potential profits.
Related: Bitcoin’s “fair value” could potentially reach $230,000, according to a Bitwise analyst.
A massive 99.9% of market participants are anticipating the Federal Reserve to maintain its rates between 4.25% and 4.50% come June 18.
Even as Bitcoin faces uncertainty, Quinlivan highlighted a growing optimism related to Ethereum.
“More people are starting to pay closer attention to Ethereum,” he remarked, noting that the asset has been gaining traction since the market rebound in mid-April. Ether (ETH) dropped to a low of $1,472 on April 9, but managed to recover to $2,793 by the latest update.
“The recent climbs in Bitcoin have allowed for a redistribution of profits, enabling other market caps to rise,” Quinlivan added.
Meanwhile, Dawson forecasted that overall crypto trading volumes might decrease in the short term since many investors are likely to step back as summer arrives in the Northern Hemisphere.
“This seasonal lull could lead to fluctuations in the market, as traders capitalize on past gains,” he mentioned.
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This article contains no investment advice or recommendations. Every investment action includes risks, and readers should conduct their own research before making decisions.
