QCP Capital: Until Bitcoin’s Daily Close Above $100K, Chasing Momentum At Current Levels Has Limited Rewards
In Brief
QCP Capital remains cautious about whether Bitcoin’s recent rally can maintain its momentum, noting that until BTC secures a daily close above the $100,000 level, the potential for further gains appears limited at current price levels.
Cryptocurrency trading firm based in Singapore, QCP Capital provided an update on recent trends in the cryptocurrency market. According to the firm, the most recent FOMC meeting did not present any unexpected developments. The Federal Reserve decided to maintain the funds rate and reiterated its consistent narrative, which includes a strong US economy, a tight labor market, and inflation that remains slightly above the 2% target.
The firm also noted that despite the reemergence of trade tensions, particularly through President Donald Trump’s proposed tariffs, which introduce additional uncertainty into the US economic outlook, Federal Reserve Chair Jerome Powell remained cautious but measured. He emphasized that the cost of patience is relatively low, signaling that there is no immediate need to reduce interest rates. Importantly, Jerome Powell avoided giving specific guidance on the potential number of rate cuts for the year, indicating that further direction would be provided at the June FOMC meeting.
Despite the Federal Reserve’s cautious tone, market expectations have already adjusted. Current market pricing reflects expectations of three rate cuts, each by 25 basis points, scheduled for July, September, and December.
Donald Trump’s Trade Agreement Tease Sparks Risk-On Sentiment, Boosting Crypto Prices And Market Optimism
QCP observed that President Donald Trump’s comments sparked a wave of risk-on sentiment early this morning, as he teased the possibility of a trade agreement. Market speculation suggests that the United Kingdom might be the likely counterparty. Although details of the announcement were scarce, the mere suggestion was enough to impact price action across various asset classes.
Cryptocurrency assets responded quickly and positively. Bitcoin rose by 2.74%, surpassing the key $99,000 level, while Ethereum saw a 6.89% increase during the Asia session, breaking free from its three-week consolidation range of $1,700 to $1,900.
On the options desk, there was a notable rise in demand for upside calls, especially those with expirations in May and June. This activity signals increasing optimism, as traders position themselves for further gains in light of the improving macroeconomic outlook.
Looking ahead to tonight’s US market open, attention will focus on whether this rally can maintain its momentum or if it risks a typical “buy the rumor, sell the news” reversal once the trade partner is officially confirmed.
For the time being, caution remains in place, QCP highlighted. Until Bitcoin can secure a daily close above the $100,000 level, the potential for further gains seems limited at current price levels.
At the time of writing, Bitcoin is trading at $99,782, reflecting a 2.85% increase over the past 24 hours. The highest price recorded was $99,819, while the lowest point reached $95,866. The market capitalization of Bitcoin currently stands at $1.98 trillion.
Meanwhile, the total global cryptocurrency market capitalization is $3.09 trillion, showing a 3.23% increase over the past 24 hours. The total trading volume for cryptocurrencies in the last 24 hours is $112.86 billion, which represents a 34.88% rise, according to data from CoinMarketCap.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, 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.
More articles
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, 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.
