Introduction
Hurt Bitcoin in Q3, The crypto market is getting ready for a story about two big players in the third quarter of 2024. Bitcoin (BTC) looks like it might be slowing down after its post-halving surge, but Ethereum (ETH) looks like it might be ready to break out. Hurt Bitcoin in Q3, Analysts say that Ethereum’s long-awaited “catch-up” period may finally be here, which might take investors’ attention away from Bitcoin, at least for a while.
But why is Bitcoin having trouble, and what’s making Ethereum come back? Let’s look at the main things that are causing this market change.
What Could Make Bitcoin Do Worse in Q3
In 2024, Bitcoin made the news a lot because of its halving event, ETF approvals, and record highs. But there are signs that a cooling-off period may be coming:
1. Tiredness After Halving
- Bitcoin has historically gone through periods of consolidation three to six months following halving.
- The first big rise after the halving might have run out of bullish impetus.
2. Pressure to Sell from Miners
- After the halving, Bitcoin miners have begun selling off their reserves to pay for things.
- More selling pressure could keep BTC’s price from going up.
3. Not Enough Big Events
- Bitcoin doesn’t have any imminent bullish catalysts because ETFs are already priced in.
- Uncertainty about regulations, like the SEC’s investigation, could make people less excited.
4. Decline in Dominance
Bitcoin’s market share has gone down a little bit, which means that money is moving into altcoins like Ethereum.
Why Ethereum Might Take Center Stage
Ethereum is getting ready for a possible “catch-up rally,” which is when ETH does better than BTC after falling behind. Here are some reasons why analysts are positive about ETH:
1. Excitement about ETF Approval:
- Spot Ethereum ETFs are likely to start trading in the third quarter, just as Bitcoin’s ETF-driven rise.
- Just like it did for BTC, institutional demand could surge into ETH.
2. Better fundamentals
- Ethereum’s forthcoming enhancements, such Pectra and Dencun follow-ups, will make it easier to scale.
- More and more people are using layer-2 solutions like Arbitrum and Optimism, which makes ETH more useful.
3. The Return of DeFi and NFT
- The Total Value Locked (TVL) is going up, which means that DeFi activity is going up.
- NFT trading volumes are going back up, while ETH is still the major blockchain for digital collectibles.
4. Is the ETH/BTC ratio going back up?
- The ETH/BTC ratio has been held back, but it might change if ETH starts to pick up speed.
- In the past, ETH has done better than BTC during altcoin seasons.
- What people think about the market and important price levels to watch for Bitcoin (BTC)
- Support: $60,000 (a very important mental level)
- Resistance: $72,000 (the highest price ever)
- Outlook: It will stay in a range unless something big happens.
- Ethereum (ETH) Support: $3,200 (a strong area for buying)
- Resistance: $4,000 (the level to break out if ETF inflows rise)
- Outlook: Bullish if institutional demand comes from ETFs.
What Experts Are Saying
“Bitcoin’s consolidation after the halving is normal, but Ethereum’s ETF story could steal the show in the third quarter.” – Research by CoinShares
“ETH/BTC seems to be oversold; we might see a mean reversion soon.” – CryptoQuant
“If Bitcoin doesn’t move, traders will move to high-beta plays like Ethereum.” – Santiment
What This Means for Investors and Traders
- People who own Bitcoin: Get ready for possible sideways movement; it would be smart to buy more.
- Ethereum fans: Q3 could be ETH’s chance to shine. Keep an eye on ETF news.
- If ETH goes up, cryptocurrencies (particularly DeFi tokens) could go up also.
Questions and Answers
Q: Will Bitcoin go down in value in the third quarter?
A: Not likely; a range-bound consolidation is more likely unless there are big shocks to the economy.
Q: If ETFs are legalized, how high can Ethereum go?
A: Some experts think that if demand for Bitcoin ETFs matches inflows, the price might reach $4,500 to $5,000.
Q: Is it a good idea to sell Bitcoin for Ethereum?
A: It depends on how much risk you’re willing to take. Diversifying your bets may be safer than putting all your money on one wager.
Final Thoughts
Hurt Bitcoin in Q3, Bitcoin’s slowing in the third quarter doesn’t imply it’s the end of the world; it’s just a normal market cycle. Ethereum has a good chance of outperforming because of its ETF potential, the resurgence of DeFi, and better technology.
Will Ethereum finally take over Bitcoin? Or will BTC come back sooner than expected?