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The Quarter Two of the Year 2024 was an eventful period for the crypto sector. During the period, the crypto market, especially the Bitcoin and Ethereum markets, witnessed several important events, capable of influencing market sentiment. Time to do an analysis to understand the Q2 price movements of the top two cryptos. Ready?
Bitcoin and Ethereum Quarterly Analysis: A General Overview
In Q2, Bitcoin marked a quarterly return of -12%, and Ethereum a return of -5.08%. Both were low compared to Q1. In Q1, Bitcoin registered a return of +68.7% and Ethereum a return of +59.8%. It was in April, 2024 Bitcoin recorded the lowest monthly return of Q1 of -14.7%. In June, it was -7.02%. Notably, in May, Bitcoin showed an impressive return of +11.1%. It was Bitcoin’s excellent performance in May that helped it to prevent the quarterly’s return from falling below -12%. In the case of Ethereum, the situation was similar. In May, it recorded an excellent return of +24.7%. But, in April, it was as low as -17.2%, and in June, it was just above -8.64%. In the absence of Ethereum’s extreme performance in May, the quarterly return would have fallen far below the current return of -5.80%.
Notably, in Q2, the Bitcoin Closing Price was $62,743. Compared to the Q1’s closing price of $71,262, it was over $8519 lower. There was not much difference in the case of Ethereum. Its closing price also saw a fall of nearly $209. The Q1’s closing price of ETH was $3,645, and in Q2, it dropped to $3,436.
The data indicates that Q2 was not as good as Q1 for both Bitcoin and Etheruem. It demands an in depth analysis of those events that influenced the price movements of BTC and ETH in Q2. Once we are done with that, we will be able to better understand the situation. And, this process may give some valuable insights on what we can expect in Q3. In this case, it is perfect to do a month-by-month analysis. Ready? Let’s start with April.
Bitcoin and Ethereum: April Price Sentiment Analysis
On the first day of April, the price of BTC was just around $71,263, which was much lower than the new all-time peak of $73,037 touched on March 13, 2024. By the end of that month, the price slipped to $60,617 – lowest the price touched in April. Clearly, the month of April was a period of decline for Bitcoin. The month opened with a red candlestick. Though in the beginning of the month the price made an attempt to recover, after 8th of April, it dropped sharply until 17th of April. In the mid April, it made another attempt to climb up, but post 22nd April, it sharply fell, showing no sign of recovery.
One of the major events happened in April was Bitcoin Halving. It took place on 20th April. The event clearly contributed a positive sentiment. At least two days before the event, the price started the fight against the ongoing downfall, and the momentum lasted till 22nd April, when the BTC price touched $66,810. In those five days alone, the price made a rise of around $5,564.
The case of Etheruem was not different in April. In the beginning of the month, it was around $3,645.56. On the last day of that month, it slipped to as low as $3,015.41. Like what we saw in the Bitcoin market, in early April, the price made an attempt to climb high. It even reached the monthly peak of $3,693.22. But, the momentum could not last long. Between 9th April and 17th April, the market witnessed a strong selling pressure. Between 11th April and 13th April alone, a decline of 13.85% was recorded. On 17th April, it touched the monthly lowest of $2,985.40. On April 18th, a strong buying pressure emerged. The positive pressure lasted till 28th April, when the price saw a high of $3,262.53.
The two prime events which influenced the Etheruem price sentiment in April were the Middle East crisis and the Bitcoin Halving. The impact of the Middle East crisis was reflected in the form of price fall between 9th and 17th April – especially between 11th and 13th April. The positive momentum witnessed after the 18th April might be the reflection of the Bitcoin Halving.
Bitcoin and Ethereum: May Price Sentiment Analysis
For Bitcoin, the month of May, 2024 was largely positive. The month began with a price of just $58,289. On the last day of that month, the price closed at $67,482. On the second day of the month itself, a strong buying pressure stepped in. It took the price to a high of $64,019, within a couple of days. Between 6th May and 14th May, the sellers of the market attempted to contain the upward moment. On 15th of May, with a strong green candlestick, the buyers of the market defeated the sellers. They helped the market to reach as high as $71,390, on 20th May. Later, the price of BTC slightly slipped, indicating a renewed attempt of the sellers to contain the momentum.
The major events reported in the month of April were the movement of nearly 4,550 Bitcoin from exchange to more secure ‘Cold Storage’ locations, the indication of reduced inflationary pressure in the April US non-farm payrolls report, the postponement of the SEC’s decision on ETH Spot ETFs on 6th May, the request of the SEC to provide updated 19b-4 filings, the approval of nearly eight Ethereum Spot ETF applications by the SEC on 23rd May, and the passing of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House of Representatives on 22nd May.
Almost all these events not only influenced the market sentiment in the Bitcoin market, but also affected the sentiment in the Ethereum market – in fact, the sentiment in the entire crypto market.
The postponement of the SEC’s decision on ETH Spot ETFs on 6th May might have sent negative impressions about the prospects of the market. Naturally, the selling pressure stepped in post the said date. Post 11th May, several positive developments occurred like the movement of around 4,550 Bitcoins from exchanges to cold storage locations, and the change of stand of the SEC towards the Spot ETF applications (on the wake of increasing prominence of the crypto regulation issues in the US election discussion forums and platforms). The most prominent ones among those were the approval of the Ethereum Spot ETF applications and the passing of the FIT21. On 20th May, a large green candlestick occurred. Though a small selling pressure emerged post that day, it could not take the price below the low of the candle of 20th May.
In the Ethereum market, the situation was similar in May also. The market began the month with a price of $2,969.36. On the last day of the month, it crossed $3,760.14. Between 6th May and 14th May, negative sentiment was dominant, most probably due to the SEC’s unwelcoming attitude towards the Spot ETF application on 6th May. The sentiment slowly shifted from negative to positive, as the SEC changed its attitude towards the ETF applications. On May 20, just two days before the SEC’s application approval, the market created a large green candle; in a single day, the price climbed from $3,073.50 to $3,659.53. After that, the price never dropped below the high of that day till the end of that month.
Bitcoin and Ethereum: June Price Sentiment Analysis
Bitcoin opened the month of June with a green candle; the price was nearly $67,728. The positive momentum lasted till the 5th of June, when the price touched the month’s peak of $71,109. What followed was a period of sharp decline. The downtrend lasted till the 24th of June, when the price reached as low as $60,256. Towards the end of the month, though the price showed a slight recovery, it could not rise beyond $62,686 – the closing price of BTC in June.
Several events, capable of influencing the crypto market, particularly the Bictoin and Ethereum markets, occurred in the month of June. The massive victory of around 33 of the 35 FairShake backed (or crypto backed) candidates in the US Congressional primaries, the release of the positive statements of Republican US Presidential candidate Donald Trump about the crypto landscape, the introduction of a bill to allow US taxpayers to pay federal taxes in BTC by Congressman Matt Gaetz, the liquidation of millions of dollars in Bitcoin by the German government, and the announcement of Mt. Gox, a failed crypto exchange, about its plan to repay its creditors.
Notably, the majority of the event helpful to positively influence the market took place towards the end of the month. It explained from where the price received the required buying pressure to contain the strong selling pressure the market had been experiencing since the 6th of the month.
The trend was slightly different in the Ethereum market. In the market, the opening price of the month was $3,813.05. Though after 5th of June, the price fell, but the fall was not as sharp as what was witnessed in Bitcoin. Etheruem was majorly in a sideways market in the month. The closing price of the month was around $3,432.25. Interestingly, the market opened and closed with a green candlestick – almost identical in length as well. The Ethereum market might have benefited from the positive sentiment it acquired post the approval of the Spot ETF applications by the United States SEC, apart from the above mentioned general aspects which contributed positive sentiment to the overall crypto market.
Endnote
In conclusion, The Quarter Two of the Year 2024 was a period of great volatility for the crypto market – especially the Bitcoin and Ethereum markets. The period witnessed several powerful events capable of influencing market sentiment, like the Bitcoin Halving and the approval of the Ethereum Spot ETF applications by the US SEC. One of the notable things observed this quarter was that the US political landscape started doing more discussions about the future of the crypto market, especially after Donald Trump openly admitted his positive attitude towards the crypto industry. This Republican candidate became the first to accept campaign donations in crypto.
Also Check Out: 2024 Crypto Market Insights: ETF Approvals, Regulatory Frameworks, and Market Dynamics