Bitcoin today is priced at $109,679, only 2.1% away from its all-time high of $111,970, set on May 22. As Bullish reports, analysts are already expecting Bitcoin to experience more of a slowdown during the third quarter. In the past, this time period has been its Achilles heel. In the meantime, Ethereum is taking a growing bite out of Ethereum’s market share and grabbing investor focus.

Historical Performance and Expert Predictions

Third quarters have not been kind to Bitcoin, as this quarter has averaged a paltry 6.03% return since 2013. By contrast, the next quarter has been its best, with an average return of 85.42%.

"will likely underperform" - Derive head of research Dr Sean Dawson

Chief of research Dr. Sean Dawson isn’t ready to predict an end to that trend. Most alarming, he argues, is that macroeconomic uncertainty still seems to plague traders. He further highlighted the compounding effect of the Federal Reserve’s monetary policy.

"Despite political pressure for rate cuts, the Fed seems poised to keep interest rates steady, which could dampen Bitcoin’s appeal for outsized returns" - Derive head of research Dr Sean Dawson

Market Dynamics and Investor Sentiment

Recent price action has allowed Bitcoin’s bull move to enable the circular flow of profits back to other mcap. As Santiment analyst Brian Quinlivan recently explained, there’s a growing buzz on social media. Everyone is looking forward to Bitcoin’s first all-time high.

"seeing an anticipation for Bitcoin's next ‘all-time high’ across social media. Since markets move the opposite direction of retail’s expectations, this usually is a sign that we aren’t quite ready for another bullish surge yet" - Santiment analyst Brian Quinlivan

Quinlivan believes that this predominate euphoria could mean that Bitcoin is not quite ready to surge bullish again. He continues to explain what will actually happen in the market.

"It wouldn’t be surprising if we do break through very soon after we see a few frustrating ‘close calls’ that cause small traders to turn sour and impatient on BTC, neutralizing this level of optimism" - Quinlivan

Researchers at Bitwise forecast Bitcoin’s fair value might eventually rise as high as $230,000. With summer holidays, the overall crypto trading volume is expected to see a fall in the upcoming months.

Ethereum's Rising Prominence

Ethereum’s momentum has been building, with Quinlivan underlining the growing bullish sentiment around the second-largest crypto.

"More and more eyes have turned to Ethereum" - Quinlivan

According to analysts, Ethereum has been "playing catch-up since markets began their recovery in mid-April," attracting more investors. This change in priorities may be the first indication that investments in the crypto space will begin to diversify.