QCP Capital Eyes Bitcoin, Ether Dip as Buy Opportunity Amid Market Fluctuations

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QCP Capital, a crypto asset trading firm based in Singapore, perceives the latest decline in value of the two dominant cryptocurrencies, Bitcoin (BTC) and Ether (ETH), as a ripe “buy the dip” opportunity. The company attributes this recent fluctuation to the mixed financial data unearthed from the reports released by the United States last week.

Specifically, the non-farm payroll records of last May highlighted an unanticipated rise in jobs. They enumerated 272,000 jobs added in contrast to the predicted 185,000, marking a noteworthy 47% surge. Yet, in the face of this progress, the jobless rate subtly increased from 3.9% to 4%. This paradoxical data incited investors to distance themselves from risky assets, primarily BTC and ETH.

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However, for QCP Capital, this withdrawal of investors unfolds as a promising sign. In a recent analysis of the market that associates the downturn with potential interest rate cuts, the firm affirmed, “We agree that this is a good opportunity to buy the dip as the markets will increasingly price in at least one Fed rate cut from here.” They further underscored the potential struggle for the US to overlook such market shifts, especially as the rest of the globe marches steadily towards rate cuts.

Revisions in Bitcoin’s value could also render the crypto asset more feasible, mainly in emergent sectors like micropayments, online betting, and gaming.

QCP Capital remains bullish on Bitcoin’s future, encouraging investors to seize the dip as an opportunity with the likelihood of a value hike down the line. However, their optimism was tainted recently by a less encouraging prognosis. Last May, the firm hinted at potential destabilization in the market once the infamous Mt. Gox platform reimburses the Bitcoin it owes to customers. The prevalent crypto trading platform, known for multiple security breaches between 2011 and 2014, is slated to return approximately 137,892 Bitcoins nearing $9.6 billion at present market values. The potential consequences of this significant influx of Bitcoin in the market leave QCP Capital concerned.

In light of recent positive affirmations for Bitcoin, the creator of the stock-to-flow (S2F) model, PlanB, suggested Bitcoin would reach around $150,000 by this year ending. They also prognosticated a growth of up to $800k by next year. Conversely, their analysis indicates a drop to $400k in 2026 and further down to $300k by 2027.

Standard Chartered shares the bullish sentiment about Bitcoin. Geoffrey Kendrick, the bank’s head of forex and digital assets research, anticipates a rise to $100,000 before the election in November. He concurs with PlanB’s prediction, elaborating that a victory for Trump could accelerate Bitcoin’s growth to $150,000, largely due to Trump’s proven support for the crypto industry.

ETH’s trajectory received a boost with the recent approval of spot exchange-traded funds (ETFs). Prior to the SEC approval, QCP Capital speculated that ETH could reach $5,000 following the approval, referencing market volatility caused by lingering uncertainty over the approval.

Despite a spike in ETH prices following positive crypto-sector sentiments from Trump and the SEC approval, QCP Capital contends that the increase is unsustainable until the SEC greenlights S-1 filings. While the initial approval was for 19b-4 filings, permitting ETH ETFs to trade traditionally, the commencement of actual trading hinges upon the SEC’s verdict on S-1 filings.

If approval for spot ETH ETFs is granted, a significant investment influx is predicted, akin to BTC ETFs. Approval could also accelerate ETH adoption in areas ranging from decentralized finance (DeFi) to crypto gambling.

Post-approval, Bitfinex’s Head of Derivatives, Jag Kooner, reckons ETH could seize up to 20% of Bitcoin’s spot ETF flows, signifying a potential shift in investor focus. He further speculated that if the SEC allows the ETH ETFs to offer staking rewards, stakeholders could deposit their ETH into liquidity pools to earn gains.