Cryptocurrency investors who watched the technology stocks rise to all-time highs would not believe Bitcoin’s (BTC-USD) performance lately. BTC stalled at $70,000 last month. After failing to break out above $73.802 from March through June, selling pressure mounted.
BTC closed recently at $60,380. Demand for spot BTC ETFs is slowing.
On June 28, 2024, Peter Thiel speculated that Bitcoin would not rise by much at current levels. He revealed at the Aspen Ideas Festival in Colorado that he sold some of his Bitcoin holdings. Last year, he invested $100 million in BTC-USD.
Cryptocurrency investors do not need to worry about Thiel’s view. Bitcoin will likely rise slowly over time. Stock investors need to hedge against the U.S. dollar. They will consider adding a small position in BTC through the convenience of buying ETFs.
Ethereum (ETH-USD) is down just the same. The price fell by 13.20% in the last month, despite markets waiting for Ethereum ETF listings. In May, the U.S. SEC approved a batch of spot ETH ETFs. Any delay is unlikely to hurt ETH-USD prices in the long term. Cryptocurrency investors want variety by holding both ETH and BTC-based ETFs.
Crypto investors should watch the price of the 20+ Year Treasury bond. Yields rise and prices fall when the U.S. government prints more money. When the economy slows, the central banks will consider printing money again.
