Singapore-based cryptocurrency trading firm QCP Capital released its latest market analysis, indicating that the current market weakness is likely temporary due to the strong correlation between cryptocurrencies and US stocks. The analysis observed a recent sell-off, with BTC dropping below the $60,000 mark and ETH falling below $2,400. According to the firm, BTC’s formation of lower lows and lower highs suggests a short-term bearish trend.
However, QCP Capital believes that as US equities begin to recover, cryptocurrencies could also experience a rebound. This correlation suggests that macroeconomic factors are currently the primary influences on the prices of risk assets.
According to the firm, the ADP employment report recently exceeded expectations, making the upcoming non-farm payrolls report crucial for confirming the strength of the US labor market. The anticipated combination of potential rate cuts and labor market strength could provide a boost to risk assets.
Additionally, QCP Capital pointed out that despite tensions in the Middle East affecting Bitcoin during what is traditionally a strong month for the cryptocurrency, they view this dip as temporary and expect the “Uptober” rally to materialize.
Cryptocurrency Market Sees Decline, While Bitcoin And Ethereum Prices Drop
As of the current writing, Bitcoin is trading at $60,498, which reflects a decline of over 0.49% in the past 24 hours. The coin reached an intraday low of $60,031 and a high of $62,233 during this period. According to Sosovalue data, spot Bitcoin exchange-traded funds (ETFs) experienced considerable outflows totaling $91.76 million as of October 3rd.
Meanwhile, Ethereum’s price currently stands at $2,350, indicating a decline of over 3.49% in the last 24 hours. The intraday low for ETH was recorded at $2,324, with a high of $2,471. Spot Ethereum ETFs saw inflows of $14.45 million as of October 3rd, which has contributed to mixed market sentiments.
The global cryptocurrency market capitalization is currently estimated at $2.1 trillion, down 1.28% from the previous day. Additionally, the total market volume has decreased by 22.03%, bringing it to $93.68 billion, according to data from CoinMarketCap.
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