Breaking News: Cryptocurrencies Losing Steam as Equities Outpace Them Since March, Wolfe Research Reports
In a surprising shift from the past years of hype and excitement, cryptocurrencies are now facing a downward trend, according to Wolfe Research. While equities have been outpacing cryptos since March, the report suggests that the path of least resistance for cryptocurrencies is further decline.
The report points out that while the price of cryptocurrencies has held steady in absolute terms, it is stuck in a downward trend. Factors like excess liquidity and high enthusiasm that once sent crypto prices soaring to new highs seem to be working against them now.
Wolfe Research remains neutral on Bitcoin until a decisive move occurs, expecting range-bound trading to continue until a breakout in either direction. After reaching a record high in March, Bitcoin has pulled back with repeated attempts to rally back falling short.
Analysts at Wolfe Research explain that the price of Bitcoin has been working incrementally lower since peaking in March, lacking strong conviction in either direction. The analysis also highlights the struggles of other cryptocurrencies, suggesting further downside is likely.
The outlook from Wolfe Research suggests that the crypto market may face more challenges ahead, with key assets showing signs of weakening momentum. Alt coins across the board are breaking down to fresh lows, indicating a trend that may continue.
In conclusion, investors should be cautious with their crypto investments as the market faces challenges and a potential further decline. It's important to stay informed and monitor the situation closely to make smart financial decisions.