QCP Capital: BTC’s Next Breakout Hinges On Strategic Bitcoin Reserve Plan Confirmation
In Brief
QCP Capital highlights Bitcoin’s drop below $100,000 amid concerns over Deepseek AI disrupting US markets, while uncertainty surrounds actions from the Donald Trump administration and the fate of a proposed Strategic Bitcoin Reserve.v
Singapore-based cryptocurrency trading firm QCP Capital released a market analysis highlighting recent trends following the first week of Donald Trump’s presidency. Bitcoin has fallen below the $100,000 mark, alongside other risk assets, as discussions surrounding China’s Deepseek technology gained momentum over the weekend.
China’s Large Language Model (LLM), Deepseek, is seen as a potential disruptor to US equity markets due to its cost efficiency and open-source capabilities. This development raises concerns about US dominance in AI, leading to speculation about possible responses from the Donald Trump administration.
A key question now is how the president might react. His administration has previously leveraged tariffs as a strategic tool, successfully pressuring Colombia into accepting deported migrants. It remains uncertain what additional measures might be introduced to protect US equity markets, but potential actions could impact global financial dynamics.
Regarding Bitcoin, QCP Capital suggests that a price surge is unlikely without confirmation of a Strategic Bitcoin Reserve. While the Donald Trump administration’s consideration of a “national digital asset stockpile” initially sparked optimism, it has not been enough to sustain a long-term bullish sentiment. Options market data indicates that traders are positioning for potential upward movement only from March onward, suggesting a lack of immediate expectations for Bitcoin’s price breakout. However, with Deepseek posing a challenge to US markets, there is speculation that Donald Trump may attempt to intervene in a way that positions him as a key player in market stability.
Volatility remains high, as reflected in elevated Friday trading volumes and the VIX index, with investors awaiting the Federal Open Market Committee (FOMC) meeting on January 30th. Despite the current market movements, Bitcoin is expected to remain relatively stable within its established trading range, regardless of the outcome of Thursday’s meeting.
Bitcoin Slips Below $99K Amid Market Volatility
At the time of writing, Bitcoin is trading at $98,828, reflecting a decline of approximately 5.53% over the past 24 hours. During this period, the cryptocurrency reached a low of $97,906 and a high of $105,163. This downward movement is in line with the broader market trend, though Bitcoin’s market dominance increased by 0.61% intraday, reaching 58.36%. Additionally, Bitcoin experienced liquidations exceeding $57 million, according to recent data from Coinglass, reinforcing the connection between market volatility and price fluctuations.
Meanwhile, the overall cryptocurrency market capitalization declined by approximately 6.52% within the day, bringing the total valuation to $3.36 trillion. However, total market trading volume surged by 87.35% compared to the previous day, reaching $150.64 billion, based on CoinMarketCap data. This suggests heightened trading activity despite the broader market downturn, likely driven by increased volatility and investor repositioning.
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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.
