According to Wolfe Research, cryptocurrencies appear to be losing popularity, which seems like an fascinating change from the media hype of previous years when extra cash and excitement drove prices to unprecedented levels.

The report highlights a clear divide between cryptocurrencies and stocks, with stocks outperforming cryptocurrencies since March. Wolfe points out that while it has held steady in absolute terms, it is stuck in a downtrend, with the easiest path likely being further decline.

“There are many factors at play and they all seem to be working against Crypto at the moment. This is a very different backdrop than in years past when excess liquidity and huge enthusiasm sent Crypto prices soaring to new highs,” the report added.

While Wolfe Research remains neutral on Bitcoin until a decisive move occurs, it does anticipate that range-bound trading will continue until a decisive breakout in one direction or the other.

After reaching a record high of $73,798 in March, Bitcoin has retreated, and repeated attempts to return to that peak have failed to produce results. Events that once inspired enthusiasm, such as inflows into US Bitcoin ETFs or hopes for future Federal Reserve rate cuts, now appear to have less of an impact.

“Price has been choppy and gradually declining since peaking in March. There is a lack of strong conviction in either direction, but as trend followers it is becoming clear to us that the path of least resistance is down,” Wolfe Research analysts explained.

The analysis also highlights the company’s problems, which saw a slump last week, suggesting further declines are likely.

What’s more, Wolfe Research’s forecasts indicate that the cryptocurrency market could face greater challenges in the future as key assets show signs of weakening momentum.

“Like AI trading, which we believe has seen its best days, Crypto has seemingly lost steam. We predict this trend will only continue if Alt coins across the board fall to new lows,” the report reads.