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 Performance Recap
In Q2, Bitcoin recorded a quarterly return of -12%, while Ethereum saw a return of -5.08%. These figures are a stark contrast to Q1, where Bitcoin enjoyed a +68.7% return and Ethereum a +59.8% return. April 2024 saw Bitcoin’s lowest monthly return at -14.7%, and June at -7.02%. However, May brought some relief with Bitcoin posting an impressive +11.1% return, which helped cushion the overall quarterly decline. Similarly, Ethereum had a stellar performance in May with a +24.7% return, though April and June saw drops of -17.2% and -8.64% respectively.
By the end of Q2, Bitcoin’s closing price was $62,743, a significant drop from Q1’s $71,262. Ethereum also saw a decrease, closing at $3,436 compared to $3,645 at the end of Q1.
This data indicates that Q2 was less favorable for both Bitcoin and Ethereum, necessitating a deeper analysis of the events influencing these price movements. This can provide valuable insights into what to expect in Q3. Let’s analyze these events month-by-month, starting with April.
April: Price Sentiment Analysis
Bitcoin’s April Journey
On April 1st, Bitcoin’s price was around $71,263, significantly lower than its all-time high of $73,037 on March 13, 2024. By the end of April, the price had slipped to $60,617, marking a period of decline. The month began with a red candlestick, and despite an early attempt to recover, the price dropped sharply after April 8th until April 17th. Mid-April saw another recovery attempt, but post-April 22nd, Bitcoin’s price fell again with no signs of recovery.
One major event in April was Bitcoin Halving on April 20th, which initially spurred positive sentiment. Two days before the event, Bitcoin’s price rose to $66,810, a $5,564 increase in just five days. However, this positive momentum was short-lived.
Ethereum’s April Performance
Ethereum’s story in April mirrored Bitcoin’s. Starting the month at $3,645.56, it fell to $3,015.41 by month’s end. Early April saw a brief climb to a monthly peak of $3,693.22, but this momentum did not last. Between April 9th and 17th, Ethereum faced strong selling pressure, with a significant decline of 13.85% between April 11th and 13th. The price hit a monthly low of $2,985.40 on April 17th before recovering slightly towards the end of the month.
Two key events influenced Ethereum’s price sentiment in April: the Middle East crisis and Bitcoin Halving. The Middle East crisis contributed to the price fall between April 9th and 17th, while the Bitcoin Halving helped generate positive momentum after April 18th.
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 momentum.
On the 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 by 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.
Ethereum’s May Momentum
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.
June: Price Sentiment Analysis
Bitcoin’s June Decline
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 Bitcoin 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 
Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President 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 events that were 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. However after the 5th of June, the price fell, but the fall was not as sharp as what was witnessed in Bitcoin. Ethereum 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, 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
