Bitcoin (BTC) has kicked off the week on a bullish note, marking a 2% climb against the US dollar in the early hours of Asia trading. Despite this positive start, the world’s leading cryptocurrency, currently hovering just below $63,000, remains approximately 3.3% lower compared to the previous week. Analysts at ETC Group attribute this subdued performance to the market’s gradual shift into a dull seasonal phase, particularly evident from June onwards.

Market Lacks New Catalysts

ETC Group analysts note the absence of fresh positive catalysts following recent US and Hong Kong spot ETF approvals and the Bitcoin Halving event. Moreover, as summer approaches, historical trends suggest below-average returns for Bitcoin. Compounding this, increasing recession risks in the US could act as a seasonal headwind, as Bitcoin’s performance often mirrors global growth expectations.

On the mining front, Bitcoin miners are experiencing reduced daily rewards post-halving, impacting aggregate miner revenues significantly. ETC’s data reveals a stark drop from approximately $72 million before the April Halving to a mere $28 million currently. This reduction in miner rewards could potentially exert selling pressure on Bitcoin.

ETF Inflows Resurge, Altcoins Experience Mixed Performance

Despite Bitcoin’s challenges, exchange-traded fund (ETF) inflows have turned positive once again, registering around $25.7 million in net inflows last week following a period of significant outflows exceeding $372 million.

In contrast, Ethereum (ETH), the second-largest cryptocurrency, has seen a 6.8% dip against the US dollar over the week. Within the broader altcoin market, Solana (SOL), Ripple (XRP), and Cardano (ADA) have recorded mid-single-digit losses. Meanwhile, Dogecoin (DOGE) has extended its losses to over 10% in the same timeframe.

As Bitcoin navigates through seasonal challenges and miner dynamics, investors and analysts closely monitor its resilience and the broader market’s response amidst evolving macroeconomic conditions.