As the cryptocurrency market stabilizes after a volatile period, a new analysis warns that a strong breakout in Bitcoin price should not be expected until the final quarter of the year.

Singapore-based digital asset firm QCP Capital said the market may remain in a wait-and-see mode for the foreseeable future, despite some positive signs emerging.

Bitcoin's overnight recovery to reclaim $60,000 suggests BTC has stabilized after last week's sell-off. It rose slightly even as BitGo moved $2 billion in BTC from Mt. Gox on Monday evening, suggesting the market may be starting to ignore the potential supply impact of these transactions.

Ethereum (ETH) has also been making positive moves, with spot ETFs posting a two-day winning streak and attracting $24.3 million in net inflows on Tuesday.

This comes as market expectations shift towards a 50 basis point rate cut by the Federal Reserve in September, boosted by a softer Producer Price Index (PPI) report from the US.

However, QCP Capital notes that while the current environment appears supportive, the major catalysts needed for a breakout are still lacking.

“With stable ETF inflows and BlackRock buying the dip last week, crypto appears well supported,” the firm noted. “However, with no major catalysts in sight, we expect no major breakout until Q4.”

In a separate report, 10x Research highlighted the importance of stablecoin inflows in sustaining any strong price rally, noting Tether’s recent minting of $1 billion USDT — albeit primarily to build reserves — along with the issuance of $2.8 billion stablecoins by Tether and Circle last week.

This suggests that institutional capital is slowly re-entering the market, but this momentum has started to show signs of waning.

10x Research also emphasized that for Bitcoin to significantly surpass the $60,000 to $61,000 resistance zone, more support is needed.

“A strong inflow into stablecoins is essential to ensure a sustainable breakout,” they noted, pointing out that other factors such as the expansion of leverage in futures and derivatives, which fueled rallies earlier this year, are now having less of an impact.


Source: https://tapchibitcoin.io/bitcoin-price-is-unlikely-to-fall-until-quarter-4-according-to-analysts.html