Crypto investors were shocked on Friday as BTC’s decline led to even greater losses in altcoins. This is not surprising since the price, stuck in a narrow range, already forced investors to act cautiously. While BTC was shaken by poor macroeconomic data, altcoins experienced faster sell-offs.
Analysts’ BTC Predictions
Crypto currency-related evaluations are frequently published by the well-known trading company QCP Capital, which shared its new analysis. The Singapore-based company’s recent assessment suggests that the sell-offs triggered by US data are a good opportunity to “buy the dip.”
We mentioned that the data coming on Friday would impact the market and that we would see rapid declines an hour before the US markets opened, even before the sell-offs increased. Everything happened within a few hours but with a delay, and altcoins faced losses reaching up to 20%.
Non-Farm Payroll data for May was expected to be at the 185,000 level, but the announced figure was approximately 100,000 higher at 272,000. Unemployment was announced at 4% against the forecast of 3.9%.
“During this drop, our office saw bullish flows, especially in BTC, with both aggressive put sellers and call spread buyers.”
Will Cryptocurrencies Rise?
The Bitcoin price, which fell from $72,000 to the $68,500 support, was not surprising and was about $1,000 above the bottom at the time of writing. Meanwhile, altcoins experienced equally weak recoveries, with some remaining stagnant. QCP Capital experts wrote the following about the current situation:
“While the rest of the world continues to cut interest rates, it will be hard for the US to ignore this. Many other central banks, including the European Central Bank and the Bank of Canada, have also recently cut rates.”
For Wednesday’s interest rate decision, FedWatch suggests a nearly 100% probability of remaining unchanged. The likelihood of a definite rate cut before December has weakened. Reuters experts say the Fed will only make 2 rate cuts this year, with the first in September. Even the average cut estimate of Fed members at the beginning of 2024 was at the 75bp level. The market was expecting a 150bp cut in those days. We will also see the new 3-year average interest rate forecasts on Wednesday evening.
