QCP Capital: Bitcoin Struggles To Recover Following FOMC Meeting And Miners’ Post-Halving Sell-Off Limits Price Gains
In Brief
QCP Capital noted that while the stock market showed robust momentum, Bitcoin continued to struggle in its recovery after the FOMC meeting.
Singapore-based cryptocurrency trading firm QCP Capital published its recent analysis, noting that while the stock market showed robust momentum, Bitcoin continued to struggle in its recovery after the Federal Open Market Committee (FOMC) meeting. As anticipated by most analysts, the committee maintained the benchmark federal funds rate within the existing range of 5.25% to 5.50%.
The firm suggests that the divergence arises from Bitcoin miners undergoing a post-halving capitulation, which is directly constraining prices. In addition, Flowbank, involved in a three-party banking agreement with cryptocurrency exchange Binance, is currently navigating bankruptcy proceedings. Thus, QCP Capital expects a relatively quiet summer ahead, characterized by minimal volatility and lacking market-moving catalysts.
Moreover, regarding Ethereum, the firm does not foresee an immediate catalyst, as Gary Gensler anticipates that approval for a spot Ethereum ETFs may not occur until late summer. Consequently, QCP Capital suggests considering early accumulation during this extended period of subdued market activity, particularly focusing on Ethereum.
Currently, Ethereum’s volatility trades at a 10% premium to Bitcoin, and the firm anticipates this difference will decrease as Ethereum’s market participants adjust their positions in anticipation of the approval of the S-1 form by late summer.
Bitcoin Shows Slight Decline Below $67,000, and ETH Sees Volatile Trading At $3,515
At present, Bitcoin is trading at $66,923, showing a slight decline of over 1% in the last 24 hours, according to data from CoinMarketCap. The cryptocurrency has stayed below the $67,000 mark today, with its 24-hour lows and highs recorded at $66,379 and $68,246. Bitcoin’s dominance currently stands at 54.15%, marking a decrease of 0.14% over the day.
Meanwhile, the price of ETH is trading at $3,515, marking a 0.32% increase over the past 24-hour period. The cryptocurrency exhibited a rollercoaster-like movement, fluctuating from its peak of $3,524 to a low of $3,434 over the past day before returning to its previous level, based on data from CoinMarketCap.
Following BTC and ETH, altcoins and memecoins mirrored the downward price movement, which is in line with broader market trends. The global cryptocurrency market capitalization decreased by 0.87% from yesterday to $2.44 trillion. Additionally, the total cryptocurrency market volume over the past day experienced a decline of 24.64%, amounting to $69.66 billion.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
