QCP, a prominent trading firm, has shared key observations about the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict continued heavy selling pressure, with BTC likely to remain within a tight trading range. Meanwhile, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH may catch up to BTC, driven by subsiding outflows from ETHE.
Read on to discover how you can profit.
Bitcoin’s Struggle: The $70,000 Barrier
For 6th time in a row, BTC has failed to rise above the $70K mark. Bitcoin is at $66,048 after a big decline. Many investors sold Bitcoin to capitalize on rising values, causing a dramatic drop. The market is becoming more skeptical about Bitcoin’s bull run, with some investors decreasing their expectations.
Despite the ongoing sell-off from Mt. Gox and the US Government, the ETF market remains hopeful. There is a notable skew towards Ethereum (ETH) ETFs as big bulls started investing in ETFs, indicating bullish sentiment for ETH.
QCP’s Telegram update highlighted, heightened market volatility. The NASDAQ has dropped by 10% from its peak, influenced by a pullback in major tech stocks. FX carry trades are being unwound, and the VIX, a measure of market volatility, has surged to 19.50.
Key catalysts driving this uncertainty include Value at Risk (VaR) shocks, high equity valuations, and global risk-off sentiment. Commodities like oil and copper have also declined due to fears of an economic slowdown.
Plus, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, emphasizing the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.
Silver Lining
QCP notes a positive development in the crypto space with a $33.7 million inflow into ETH spot ETFs, providing a much-needed boost to ETH prices. However, they foresee continued outflows from ETHE in the coming weeks. Recent movements of Silk Road BTC by the US government have added to the market’s uncertainty.
QCP suggests a strategic trade involving BTC, which will likely stay within its current range, while ETH offers a more promising opportunity. They propose a trade targeting a range of $4,000 to $4,500 for ETH, which could yield a 5.5x return by August 30, 2024.
Also Read : Top Altcoins To Stack For The Upcoming Crypto Bull Run!
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