Bitcoin has faltered in the second quarter of 2024, trailing behind global stocks, bonds, and commodities in terms of performance, analysts highlighted.

Since the beginning of April through mid-June, Bitcoin has declined approximately 5%, according to Bloomberg data. Despite reaching a peak of $73,798 in March, attempts to regain this position have been unsuccessful.

In stark contrast, Bitcoin had surged 67% in the previous quarter, significantly outperforming traditional asset indexes.

The surge was largely fueled by excitement surrounding the approval of US Bitcoin exchange-traded funds (ETFs). However, Noelle Acheson, author of the Crypto Is Macro Now newsletter, noted that the enthusiasm surrounding ETF approvals has waned. Acheson pointed out that recent inflows into Bitcoin ETFs have primarily come from existing holders, emphasizing that new investments are crucial for price movements.

Bitcoin ETFs have attracted over $15 billion to date, making them highly sought-after investment vehicles on Wall Street. JPMorgan Chase strategists observed a shift of funds from digital wallets on exchanges to these new ETF products, estimating a net flow into crypto, including ETFs and other sources, at $12 billion for this year. This figure is significantly lower than the $45 billion recorded in 2021 and $40 billion in 2022, leading the strategists to express skepticism about continued rapid inflows for the remainder of 2024.

Acheson also suggested that Bitcoin's lackluster performance could be attributed to selling pressures from miners. Following the April halving, which reduced the block reward from 6.25 BTC to 3.125 BTC, miners faced reduced profitability. Crypto mining analytics firm Hashrate Index warned of an upcoming "hefty upward difficulty adjustment" that could further pressure miners to sell their holdings, potentially impacting market sentiment negatively.

Despite these challenges, some analysts remain bullish on Bitcoin's long-term prospects. Analyst CryptoCon has set a year-end price target of $91,539, while Michael Novogratz of Galaxy Digital predicts a range around $100,000. Ark Invest's Cathie Wood has expressed the most optimistic outlook, raising her long-term price target for Bitcoin significantly to $3.8 million.

In conclusion, while Bitcoin has faced headwinds in Q2 2024, including reduced investor inflows and selling pressures from miners, bullish sentiments from key analysts suggest optimism for the cryptocurrency's future performance.