QCP Capital foresees an expanded surge in the market after Bitcoin’s halving event.
QCP Capital, a crypto asset trading firm, has made a bold prediction that Bitcoin will reach a new all-time high after the halving event, thanks to a wider rotation of liquidity in the market.
In its recent market update, the firm highlighted that Bitcoin ETF inflows peaked on March 12, with over $1 billion entering the market. However, there has been a subsequent decline in net inflows, and a significant outflow of $326.2 million, which is the largest to date. This led to a sharp drop in Bitcoin’s price to $60,770, before it eventually recovered to over $63,000.
Today, Bitcoin’s daily trading volume has decreased by 8%, which suggests a potential slowdown in liquidation. QCP Capital speculates whether these movements indicate a trend towards net daily outflows or simply position adjustments ahead of the Federal Open Market Committee (FOMC) meeting. The Federal Reserve had previously implied that there would be three rate cuts this year, and the market has adjusted its expectations accordingly. Typically, when the Fed cuts rates, it boosts Bitcoin prices by reducing the appeal of yield-bearing assets. This makes non-yielding assets like Bitcoin more attractive to investors.
However, persistent inflation and rising costs in areas such as energy, housing, and supply chains may lead to a reevaluation, potentially resulting in a reduction in the forecast to two rate cuts. QCP Capital believes that such an outcome could have a negative impact on Bitcoin’s spot price.
Despite these uncertainties, the firm remains optimistic about Bitcoin’s future trajectory. They believe that a “broad liquidity rotation” could drive the cryptocurrency to new highs after the next halving event. They do acknowledge the possibility of a severe short-term correction due to existing leverage, but they recommend traders to adopt strategies like the Enhanced Sharkfin. This strategy offers principal protection and significant upside potential, allowing traders to navigate the volatility. According to QCP Capital, this approach provides an optimal balance, minimizing downside risk while maximizing the chances of profiting from an upswing in Bitcoin’s value.
In other news, the price of STX has experienced a jump amidst the market downturn following the approval of the Nakamoto upgrade. For more updates, follow us on Google News.
