Wolfe Research has observed a significant shift in the cryptocurrency market, with prices declining from the peak levels reached in previous years due to factors such as reduced excess liquidity and diminished investor enthusiasm.

The report highlights the underperformance of cryptocurrencies compared to equities since March. Bitcoin, while maintaining its absolute value, has been on a downward trajectory. Various factors, including reduced excess liquidity and waning enthusiasm, are contributing to this decline.

Wolfe Research maintains a neutral stance on Bitcoin until a decisive price movement occurs. However, the current range-bound trading is expected to continue until a clear breakout in either direction emerges.

Bitcoin's repeated failed attempts to reach its previous record high of $73,798 indicate a lack of strong conviction in the market. The recent decline in Ethereum prices further suggests a potential downside for the cryptocurrency market.

Wolfe Research's analysis suggests that the cryptocurrency market may face additional challenges in the near future. The weakening momentum of key assets, coupled with the declining popularity of other speculative trends like AI, indicates a potential continuation of the downward trend clcik here to know more