QCP sees Ethereum as a safe bet amid Bitcoin’s slowdown
QCP, a leading business organization has shared key observations about the cryptocurrency market. Bitcoin's struggle to break the $70,000 mark has led QCP to predict continued heavy selling pressure, with BTC likely to remain in a tight trading range. Meanwhile, Ethereum (ETH) is seen as a more promising investment with potential profits as ETH can reach BTC, driven by the reduction in outflows from ETHE.
Read on to find out how you can profit.
Bitcoin Struggle: The $70,000 Eclipse
For the 6th time in a row, BTC failed to rise above the $70K mark. Bitcoin is at $66,048 after a big fall. Many investors have sold Bitcoin to take advantage of the rising price, resulting in a dramatic fall. Bitcoin's bull run is creating more skepticism, with some investors lowering their expectations.
Despite the ongoing sell-off from Mt Gox and the US government, the ETF market remains promising. There is a significant bias in favor of ETH as large bulls start investing in ETFs.
QCP Telegram update highlighted, high market volatility. The NASDAQ is down 10% from its peak, influenced by a pullback in major tech stocks. FX carry trades were unwound, and the VIX, a measure of market volatility, rose to 19.50.
Key drivers of this uncertainty include Value at Risk (VaR) shocks, high equity valuations and global risk appetite. Commodities such as oil and copper also fell amid fears of an economic slowdown.
In addition, QCP expects increased market volatility before the upcoming FOMC meeting, which emphasizes the importance of the Federal Reserve statement and Jerome Powell's next press conference.
hope
QCP notes a positive development in the crypto space with $33.7 million going into the ETH Spot ETF, giving a much-needed boost to the ETH price. However, they predict continued outflows from ETHE in the coming weeks. The US government's recent Silk Road BTC moves have added to the market's uncertainty.
QCP suggests a strategic trade related to BTC, which will probably stay in the current range, while ETH offers a more promising opportunity. They proposed a trade target of $4,000 to $4,500 for ETH, which could return 5.5x by August 30, 2024.
