QCP Explains Why Bitcoin and Altcoin Market Is Under Pressure
Crypto markets have been under pressure recently due to various factors. According to analysts, there are several important reasons behind these fluctuations in the markets.
QCP analysts think that investors' risk appetite has decreased with the macro developments in the last few days.
Developments affecting the market
Unexpected Nonfarm Employment data in the USA surprised the markets. As interest rate cut expectations for July and September faded, US Treasury bond yields rose to their highest levels in recent times.
French President Emmanuel Macron's call for early elections caused an increase in geopolitical risks in the European Union. This development caused the EURUSD parity to decline and the Dollar to strengthen. Increasing geopolitical uncertainty has increased the risk aversion tendency of markets in general.
Investors are in risk-averse mode ahead of inflation data and the Federal Open Market Committee (FOMC) meeting to be released today. At this month's FOMC meeting, a chart showing how many interest rate cuts the Fed predicts for 2024 will be published. This development will give important clues about the course of the markets.
QCP analysts also reported that there was an outflow of $64 million from BTC ETFs at the beginning of the week. This may be due to investors' desire to reduce risk before today's developments.
There may be a buying opportunity
“Despite the short-term challenges, we think this could be a good opportunity to accumulate coins,” QCP analysts said.
Analysts, who say that Biden and Trump are competing with each other to win votes from cryptocurrency voters before the presidential election, expect the market to gain bullish momentum with the approval of Ethereum spot ETFs.