The second quarter of 2024 proved to be a turbulent period for the cryptocurrency industry. During this time, major market-moving events significantly influenced investor sentiment, particularly in the Bitcoin and Ethereum markets. As we move into Q3, it's essential to take a closer look at how the two largest digital assets performed from April to June and understand the forces behind their price movements.
This analysis will break down the quarterly performance of Bitcoin and Ethereum, examine key monthly trends, and explore the underlying factors that shaped market dynamics—offering valuable insights for investors navigating the evolving crypto landscape.
Bitcoin and Ethereum: Q2 Performance Overview
In Q2 2024, Bitcoin recorded a quarterly return of -12%, while Ethereum posted a more moderate decline of -5.08%. These figures stand in stark contrast to the bullish momentum seen in Q1, when Bitcoin surged by +68.7% and Ethereum climbed +59.8%.
April was especially challenging for both assets. Bitcoin saw its worst monthly performance of the quarter with a drop of -14.7%, while Ethereum fell -17.2%. June brought further losses, with Bitcoin down -7.02% and Ethereum sliding -8.64%. However, May emerged as a bright spot—Bitcoin rallied +11.1%, and Ethereum delivered an impressive +24.7% return, temporarily restoring optimism across the market.
By the end of June, Bitcoin closed the quarter at $62,743, a significant drop from its Q1 closing price of $71,262. Similarly, Ethereum ended Q2 at $3,436, down from $3,645 at the end of March.
These numbers highlight a clear shift in market conditions—what drove this correction, and what can we expect moving forward?
👉 Discover how market cycles influence crypto returns and when the next upswing could begin.
April: A Month of Declines and Volatility
Bitcoin’s Downward Trajectory
At the start of April, Bitcoin opened near $71,263—already below its all-time high of $73,037 set on March 13. The month began with red candlesticks, signaling bearish pressure. Although there were brief recovery attempts early in the month, prices entered a sharp downtrend between April 8 and April 17.
A short-lived rebound occurred around mid-April, but momentum failed to hold. After April 22, Bitcoin resumed its downward path without any sustained recovery. Market analysts attributed this decline to several factors:
- Post-halving profit-taking: The Bitcoin halving event occurred on April 20, reducing block rewards from 6.25 to 3.125 BTC. Historically, such events are followed by short-term sell-offs as miners and investors lock in profits.
- Reduced trading volume: Liquidity dried up in the days following the halving, contributing to heightened volatility.
- Macroeconomic uncertainty: Rising bond yields and stronger-than-expected U.S. economic data delayed expectations for Federal Reserve rate cuts, weighing on risk assets like crypto.
Ethereum’s Struggles Amid Network Upgrades
Ethereum also faced headwinds in April, dropping from $3,645 to $3,008 by month-end. Despite ongoing network upgrades and growing interest in restaking protocols like EigenLayer, investor focus shifted toward macro fundamentals.
Notably, the anticipation around potential Ethereum ETF approvals did not provide enough support to counter broader market weakness. Regulatory delays and cautious statements from the SEC contributed to muted sentiment.
May: A Rebound Driven by Institutional Momentum
May marked a turning point for both cryptocurrencies. Bitcoin rebounded to $69,800 by month-end, fueled by strong institutional inflows and renewed retail interest.
Key drivers included:
- Spot Bitcoin ETFs gaining traction: U.S.-listed spot Bitcoin ETFs recorded net inflows for five consecutive weeks, with BlackRock’s IBIT and Fidelity’s FBTC leading demand.
- Strengthening on-chain metrics: Network activity increased, with rising active addresses and transaction volumes indicating renewed user engagement.
- Improved market liquidity: As volatility stabilized, traders returned to derivatives markets, boosting futures open interest.
Ethereum outperformed Bitcoin in May, surging to $3,780—a +24.7% monthly gain. This rally was supported by growing excitement around potential spot Ethereum ETF approvals expected in mid-to-late 2025.
Developers also made progress on scalability solutions, including Proto-Danksharding (EIP-4844), which reduced Layer 2 transaction fees and improved user experience across decentralized applications.
👉 See how ETF approvals could reshape the future of digital asset investing.
June: Consolidation Amid Macroeconomic Headwinds
The optimism of May faded in June as macroeconomic concerns resurfaced. Weaker-than-expected jobs data and persistent inflation fears created uncertainty about the Fed’s next move, leading to risk-off behavior in financial markets.
Bitcoin gradually declined from $69,800 to close at $62,743. Ethereum followed a similar path, ending the month at $3,436 after peaking near $3,800 earlier in June.
Despite the pullback, long-term indicators remained positive:
- Hash rate reached new highs: Bitcoin’s network security strengthened post-halving, reflecting miner confidence.
- Ethereum staking continued growing: Over 35 million ETH were staked by quarter-end, representing more than 29% of the total supply.
- DeFi and NFT activity stabilized: Total value locked (TVL) in DeFi protocols held steady above $100 billion.
Core Keywords Integration
Throughout this analysis, several key themes have emerged that align with core search intent around cryptocurrency performance:
- Bitcoin price analysis 2024
- Ethereum market trends
- Cryptocurrency quarterly review
- Post-halving Bitcoin performance
- Ethereum ETF speculation
- Crypto market volatility
- On-chain activity insights
- Institutional crypto adoption
These keywords naturally reflect investor interests during periods of market transition and are critical for understanding both technical and fundamental developments shaping digital asset valuations.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin drop after the halving?
A: While halvings reduce supply inflation and are historically bullish long-term, they often trigger short-term sell-offs as miners and investors take profits. Combined with macro headwinds in Q2 2024, this led to temporary downward pressure.
Q: Is Ethereum still on track for a spot ETF approval?
A: Yes—regulators are reviewing applications with decisions expected in 2025. Recent court rulings favoring crypto innovation have increased optimism around approval chances.
Q: What caused the May rebound in crypto prices?
A: Strong inflows into spot Bitcoin ETFs, improving on-chain metrics, and growing institutional participation drove renewed buying pressure across both Bitcoin and Ethereum.
Q: How do macroeconomic factors affect cryptocurrency markets?
A: Crypto is increasingly correlated with risk assets. Interest rate expectations, inflation data, and liquidity conditions influence investor appetite for volatile assets like Bitcoin and Ethereum.
Q: Was Q2 2024 entirely bearish for crypto?
A: While quarterly returns were negative, May’s strong performance showed underlying resilience. The market is transitioning rather than collapsing, setting potential groundwork for future growth.
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Final Thoughts: Looking Ahead to Q3 2025
The second quarter of 2024 served as a reality check after the explosive rally in Q1. While prices retreated, the fundamentals of both Bitcoin and Ethereum continued to strengthen—from network security and staking adoption to institutional interest and regulatory progress.
Investors should view this period not as a setback but as a necessary consolidation phase within a broader bull cycle. With key catalysts like potential Ethereum ETF approvals and improving macro conditions on the horizon, Q3 2025 may reignite strong upward momentum.
Understanding these patterns—how events like halvings, ETF developments, and macro shifts influence price action—is crucial for making informed decisions in today’s dynamic crypto environment.