Bitcoin's Q2 Decline Sets Stage for Potential Bear Market

Bitcoin's (BTC) Q2 performance was lackluster, marked by a 14.20% decline in value. The cryptocurrency started the quarter strong, reaching a May high of $82,833 after trading near $68,000 at the beginning of Q2.

However, Bitcoin failed to break through resistance between $81,000 and $83,500, ultimately succumbing to leveraged and institutional selling. This led to a drop to approximately $59,100 in early June.

The Federal Reserve's hawkish stance, driven by stronger-than-expected US inflation data, contributed significantly to the decline. The market's shift from rate cuts to potential rate hikes negatively affected Bitcoin, gold, and silver.

While softer US labor market data has eased rate-hike expectations, the damage may already be done for Q3. BTC closed below its 200-week moving average near $62,444 for the first time since October 2023, raising concerns of a further decline toward the $50,000-$52,000 support zone.