QCP Capital's latest report believes that Bitcoin has bottomed out, and puts forward four bullish reasons, including the cooling of the US economy and the upcoming launch of the ETH spot ETF. In addition, the US June CPI will be announced tonight, so please be careful of large fluctuations.
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Although the German government transferred out another 10,853.5 bitcoins (about 638 million US dollars) yesterday (10th), the price of bitcoin did not fall further below the recent low of 54,000 US dollars. It is still holding at around 58,000 US dollars, currently at 57,904 US dollars, up 0.46% in the past 24 hours.
Regarding the fact that BTC has not reached a new low, digital asset trading company QCP Capital released a new report last night stating:
The overall economic backdrop has become more optimistic over the past week and we believe cryptocurrencies have bottomed out.
QCP Capital offers 4 reasons to be bullish
In the report, QCP Capital pointed out four reasons for being bullish:
1) Last week’s employment data was weak, and even Fed Chairman Powell’s testimony to the Senate reiterated that market conditions are moving toward the ultimate goal.
Last night, Powell reiterated at the House of Representatives' monetary policy hearing that the US economy has begun to cool down, and said there is no need to wait until inflation drops to 2% before starting to cut interest rates.
2) Despite the German police selling over 6,000 BTC and the pending potential selling pressure from MtGox repayments, BTC has formed a double bottom and failed to fall below $54,000.
The German government has transferred a total of 34,342 BTC so far, and still holds only 15,552 BTC (about $900 million), which is less than 30% of its original holdings. It is expected to complete the liquidation this week. The longest period for Mt. Gox to repay BTC is about 3 months, so how much selling pressure this will cause in the market needs further observation.
3) Tonight's weak CPI data may finally solidify the Fed's decision to cut interest rates in September and December.
According to CME FedWatch, the probability of a rate cut in September is as high as 70%.
4) A series of S-1 amendments for an ETH spot ETF could also indicate a deal is imminent. We believe this could happen this month, especially if the applicant announces a fee schedule.
Bloomberg analyst James Seyffart has predicted that an ETH spot ETF could be launched later this week or during the week of July 15.
US CPI will be released tonight, be careful of fluctuations
Tonight at 20:30, the US will release the June Consumer Price Index (CPI), which is crucial to the prospects of the Federal Reserve's subsequent interest rate cuts. Currently, analysts estimate that the June CPI will be 0.2% month-on-month. A decrease or increase could trigger violent fluctuations in US stocks.
In particular, the U.S. stock market has hit new highs in recent days. If it is unexpectedly higher than expected, it means that inflation is picking up, which may trigger a sharp decline.
Binance CEO: Prices may fluctuate but industry fundamentals are strong
On the other hand, despite the lack of strong performance in Bitcoin prices, the inflow of funds into Bitcoin spot ETFs remains strong. After hitting a total net inflow of $143 million on the 5th (a one-month high), net inflows of $295 million and $216 million were recorded on the 6th and 7th, respectively, highlighting investors' strong interest in Bitcoin.
In this regard, Binance CEO Richard Teng said:
In the past six months, US-listed Bitcoin ETFs have brought in more than $14.7 billion in net inflows ($15.4 billion at the latest). What does this mean? It means that people's interest in Bitcoin and digital assets remains high.
While token prices and market capitalizations will fluctuate, the long-term fundamentals of our industry remain strong.
Richard Teng’s words urged the community to remain focused and continue building despite market fluctuations.
