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BTC experienced a significant drop today, and ETH’s price fell to $2,900. Despite the upcoming ETH ETF listing, concerns about billion-dollar sales could turn the crypto market negative. This event is one of the biggest loss series triggered in the markets since the MTGOX hack. Previously, rumors about the return schedule also caused market declines.
QCP Capital Crypto Predictions
BTC is trying to reclaim $57,000 after the recent drop, but investors remain cautious after seeing consecutive new lows. ETH has returned to $2,985 for now, and while altcoins remain in the red, SOL Coin reclaimed $135, nullifying 24-hour losses.
So, what do QCP Capital experts think? In today’s market assessment, they wrote:
“Cryptocurrencies fell significantly again with the opening of Asian markets. BTC and ETH recovered slightly before the US opening. The reasons for the drop are as follows:
The market reacted to news of new BTC sales supply involving transfers by Mt. Gox and the German Government. Speculators likely triggered liquidations around $58,000 in weak markets during the US holiday by overselling based on expectations.
Our view: Spot prices stabilized, showing good support around $54,000. Panic decreased significantly with front-end volumes easing from 65 to below 50 for BTC and from 80 to 62 for ETH. Today’s US employment data showed downward revisions for both April and May figures. This confirms Powell’s disinflationary path and potentially earlier rate cuts, with both September and December now priced with higher probability.”
Cryptocurrency Predictions
The significant downward revision of non-farm employment data was one of the most important topics today. This was also the reason for the accelerated BTC increase after the US markets opened. Powell frequently mentions the potential for earlier rate cuts with weakening employment. While the unemployment rate increased, wage growth was weakening, but non-farm employment remained strong.
Now, with the revision of employment data, we may see more moderate statements from the Fed. This could reduce the impact of new sales supply in cryptocurrencies.
