QCP Capital: Crypto market experiences a surge
Crypto markets are growing more uncertain as the desire to minimize the risk of an ETH reversal intensifies. Analysts at QCP Capital anticipate that the cryptocurrency sector will continue to be nervous as the conflict between Iran and Israel escalates in the Middle East. Furthermore, many traders are now seeking to avoid risk due to the weak performance of U.S. stocks.
Funding for alternative contracts is also generally negative, indicating that a significant amount of long-term leverage has been eliminated. However, analysts note that there is still a strong demand for Bitcoin (BTC) in the crypto market, in contrast to Ethereum (ETH).
Given the current dynamics of major cryptocurrencies, experts recommend taking a very cautious approach when looking for buying opportunities and purchasing BTC or ETH at a significant discount to the spot price.
In related news, Bitcoin’s price experienced a sharp decline on the night of April 14 following reports of Iran’s attack on Israel. The price of BTC dropped by 8% below $62,000, marking its largest retreat since March 2023. However, the price recovered slightly and reached $62,300 at the time of publication, according to CoinMarketCap data.
Last week, QCP Capital expressed confidence that the upcoming Bitcoin halving, which will reduce the miners’ reward for each mined Bitcoin block to 3.125 BTC, could significantly boost demand for the first cryptocurrency. Other factors contributing to its growth include increased inflows into spot ETFs and reports that Citadel, Goldman Sachs, UBS, and Citi have joined BlackRock’s exchange-traded fund. BlackRock will serve as an authorized broker-dealer responsible for creating and redeeming shares of the ETF.
