Cryptocurrencies appear to be losing momentum, which seems to be an interesting shift after the uproar of past years when extra money and excitement pushed prices to new heights, according to research firm Wolff.
The report highlights the clear gap between cryptocurrencies and stocks, with stocks outperforming cryptocurrencies since March. Wolf points out that although Bitcoin is stable in absolute terms, it is stuck in a downtrend, and the easiest path is likely to be a further decline.
“There are a number of influencing factors, all of which currently seem to be working against cryptocurrencies. This backdrop is very different from previous years when excess liquidity and enthusiasm led crypto prices to new highs.’
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While Wolf Research remains neutral on Bitcoin until a decisive move occurs, it expects trading to continue in a specific range until a decisive breakout occurs in either direction.
After hitting a record high of $73,798 in March, Bitcoin has taken a step back, with repeated attempts to rise back to that peak failing. Events that once sparked excitement, such as inflows into US Bitcoin ETFs or hopes for future cuts in federal interest rates, now seem to have less impact.
“Prices have fluctuated and gradually fallen since peaking in March. There is no strong conviction in either direction, but as trend watchers, it has become clear to us that the path that is least resistant is the downtrend,” explains Wolf Research analysts.
The analysis also highlights the suffering of Ethereum, which saw a collapse last week, suggesting the possibility of further declines.
Moreover, Wolff’s research forecasts suggest that the cryptocurrency market may face more challenges in the future, as major assets show signs of weakening momentum.
“Similar to AI trading, which we also believe has had its best days at the moment, cryptocurrencies seem to have run out of momentum. We expect this trend to continue as altcoins collapse across the board to new lows.’
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