The US stock market continues to outperform Bitcoin

Bitcoin (BTC) price is experiencing sustained selling pressure, having recently fallen below the critical $65,000 support level.

Despite the rally in the US stock market, the value of the cryptocurrency corrected by 10% from its June peak of $72,000.

Over the past week, BTC has significantly underperformed the US stock market, hitting its lowest levels in a month due to the lack of new positive catalysts.

Despite yesterday's decline, the S&P 500 has shown resilience and a strong bullish trend recently, reaching new all-time highs. The same can be said for the Nasdaq index. The Dow Jones on the other hand did not correct like the other major indices and continued the upward trend.

In the last two weeks as Bitcoin , as well as the broader crypto market, is characterized by a downward trend as the initial excitement of the approval of Ethereum ETF is weakening.

Data from IntoTheBlock shows that a major reason for this profit-taking is that the cryptocurrency market nearly doubled between the fourth quarter of 2023 and the first quarter of 2024.

So far in June, Bitcoin miners have sold over 30,000 BTC, valued at $2 billion. This is largely due to the recent halving, which increased operating costs and reduced profits, forcing the mining industry to liquidate some of its holdings.

In addition to miners, Bitcoin is under additional selling pressure due to increased outflows from Bitcoin ETFs, which last week exceeded $500 million. At the same time, the German government transferred large amounts of BTC from their holdings to exchanges, indicating potential sales. The government still holds 47,000 BTC worth $3 billion in its reserves.

Interestingly, despite the sell-off, more than 87% of holders of the leading cryptocurrency are still in profit. This shows that there is plenty of room in the market for further profit taking.

Market analysts predict that the Bitcoin price consolidation may continue until the end of summer 2024. The next big bull phase is expected to start around the month of September.

In the coming week, the main focus will be on the release of the Personal Consumption Expenditure (PCE) price index for May, scheduled for Friday. The decline in the core consumer price index (CPI) last month suggests potential downside risks to the PCE index.

In addition, spending may also be at risk due to weak retail sales, although personal income may see an uptick, as evidenced by higher-than-expected average hourly wages.