Bitcoin Diverges from US Equities Amidst Supply Issues

Bitcoin (BTC) has decoupled from the bullish US equities market despite potential economic benefits, facing challenges in surpassing the $63,000 price level. While the market initially saw optimism in H1 2024, Bitcoin has struggled since June due to several headwinds, including diminished volatility, resumed selling by long-term holders, and a potential supply overhang from Mt. Gox depositors and the German government. The supply overhang, coupled with profit-taking by long-term holders, has pushed Bitcoin's price down nearly 15% from its March peak. Despite potential economic benefits, Bitcoin has not benefited as expected, with negative news impacting the market more due to decreased interest in the spot market and negative flows from investment products.