Bitcoin price hovers around $62,000 as altcoins turn red again. The reason for today’s fluctuation in BTC price was the JOLTS data. Employment remains strong. Moreover, while Powell was signaling easing in this area, this data exceeded expectations. So, what do experts say?
What Is Happening in Cryptocurrencies?
July started negatively due to MTGOX returns and government BTC sales. In fact, during the declining periods of June, we saw significant rises in July. As of the time of writing, Fed member Goolsbee said, “I don’t believe it will take longer to reach the final stage of inflation.” This shows that members expect a decrease in inflation even if employment remains strong. Indeed, Powell’s comments were also in this direction.
The decline of the king cryptocurrency caused losses of 50% and above in altcoins, so investors are eagerly awaiting the rise. When this turnaround begins, it will open the door to significant gains.
Crypto Experts’ Comments
QCP Capital experts are extremely successful in reading developments on the macroeconomic front. Therefore, we regularly review and analyze their market predictions. Today, about an hour before the JOLTS data was released, they wrote the following:
“The market’s attention is currently focused on the potential approval of a spot ETH ETF. Although the earliest approval date is rumored to be July 2, we believe the likelihood of approval this week is low.
Mt Gox returns are expected to start this week. This means an excess supply of up to 140,000 BTC on the exchange. Since the details of the return program are not clear, this pressure will continue to be felt on the market.
BTC continues to be supported above 60,000 and ETH above 3,300. However, with BTC trading at a 1-month ATM level of 40 volts, volatility remains low. We expected the spot-forward basis to compress with downward price movement, but surprisingly it continued to stay in the 9% – 11% range.
Our view: While the fundamental view is that crypto continues to trade in a range, a relatively lower volatility environment with higher base returns provides some interesting high convexity (think higher upside) plays.”
In their previous assessments, QCP Capital experts mentioned that the bottom has been seen and a gradual, albeit slow, rise would begin. They have not moved away from this view.
