Bitcoin Price Not Expected to See Major Breakout Before Q4As the cryptocurrency market stabilizes after a turbulent period, a new analysis warns against expecting a major breakout in the Bitcoin price before the final quarter of the year. Singapore-based digital asset firm QCPCapital says that while there are encouraging signs, the market could remain in a wait-and-see mode for the foreseeable future
Bitcoin Price Not Expected to See Major Breakout Before Q4
As the cryptocurrency market stabilizes after a turbulent period, a new analysis warns against expecting a major breakout in the Bitcoin price before the final quarter of the year. Singapore-based digital asset firm QCPCapital says that while there are encouraging signs, the market could remain in a wait-and-see mode for the foreseeable future.
Bitcoin bounced back above the $60,000 mark overnight, showing that BTC has successfully stabilized after last week's sell-off. Even with BitGo transferring $2 billion worth of Mt.Gox BTC on Monday night, Bitcoin still edged higher, suggesting that the market may be beginning to shrug off the potential impact of these transactions on supply. Ethereum (ETH) has also seen positive movement, with spot ETFs seeing two consecutive days of inflows, attracting $24.3 million in net inflows on Tuesday. Market expectations of a 50 basis point rate cut by the Fed in September have been fueled by the softer-than-expected US Producer Price Index (PPI) report.
However, QCPCapital points out that while the current environment may appear favorable, there is a lack of major catalysts needed for a breakout. The firm states: "Cryptocurrencies appear to have found relatively good support with continued ETF inflows and BlackRock's bargain-hunting last week." "However, with no major catalysts, we do not expect a major breakout before the fourth quarter."
In a separate report, 10xResearch highlighted the importance of stablecoin inflows to sustain any significant rally, noting that Tether recently minted $1 billion of USDT though primarily for inventory building while Tether and Circle issued $2.8 billion in USDT last week. This indicates that institutional capital is gradually re-entering the market, but there have been signs that this momentum is waning.
10xResearch also emphasized the need for more support for Bitcoin to break through the $60,000-$61,000 resistance levels significantly. They state: "Strong stablecoin inflows are essential for a sustainable breakout," and point out that other factors driving the rally earlier this year, such as increased leverage in futures and derivatives, are now having a diminished impact.
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