The latest analysis from QCP Capital, a digital asset firm based in Singapore, suggests that a significant price breakout for Bitcoin may not materialize until the final quarter of the year, as the cryptocurrency market settles post tumultuous periods.
Despite Bitcoin’s recent climb above $60,000, QCP Capital forecasts a subdued market in the upcoming months, pointing out that substantial upward movement might be delayed. The market resilience is evident as it shrugged off potential supply impacts following BitGo’s massive transfer of $2 billion worth of Mt. Gox BTC on Monday night.
Notably, Ethereum has also displayed positive movement, with spot ETFs drawing in $24.3 million in net inflows across two days. The optimism is further fueled by market expectations of a potential 50 basis point rate cut by the Federal Reserve in September.
Nevertheless, QCP Capital advises caution as significant breakouts without significant catalysts may be premature. Despite consistent ETF inflows and recent institutional purchases by BlackRock providing support, sustained momentum is expected to be lacking until Q4.
Additionally, stablecoin inflows play a crucial role in sustaining any major rally, as highlighted by 10x Research. Although there has been notable institutional interest indicated by recent significant issuances of USDT and other stablecoins, the momentum seems to be waning.
According to 10x Research, for Bitcoin to breach the resistance zone of $60,000 to $61,000, stablecoin backing is essential. Factors like futures and derivatives leverage, once influential in price rebounds, now exhibit diminished impact on market dynamics.
In essence, while recent market trends showcase promise, a substantial breakout in Bitcoin’s price trajectory may be delayed until Q4 owing to the absence of significant catalysts. The influx of stablecoins and institutional engagement continue to be vital for sustained market expansion.
