Singapore-based cryptocurrency trading firm QCP Capital released a market analysis highlighting Bitcoin’s retreat to the $95,000 support level, attributed to unexpectedly strong US job market data. The Job Openings and Labor Turnover Survey (JOLTS) report revealed job openings surged to 8.1 million, exceeding the forecast of 7.74 million. This surprising labor market resilience spurred risk-averse sentiment, leading to a sell-off in high-risk assets as long-term bond yields climbed sharply.
Bitcoin’s sudden price decline also resulted in approximately $206 million in liquidations within just one hour. The broader financial markets mirrored this risk-off sentiment, with equities taking a hit. The Nasdaq and S&P 500 displayed notable weakness, hovering near 21,200 and 5,900, respectively.
In parallel, spot Bitcoin exchange-traded fund (ETF) inflows dropped drastically by 94%, falling from $987 million to $52.9 million. Among ETFs, BlackRock’s IBIT stood out, recording a considerable inflow of $596.11 million. In contrast, ARK and 21Shares’ ARKB experienced substantial outflows, with $212.55 million withdrawn from the fund.
QCP Capital emphasized that market attention is now focused on the upcoming Federal Open Market Committee (FOMC) and nonfarm payroll (NFP) reports, which are expected to impact Bitcoin’s price movement. They interpret the current pullback as a temporary pause, suggesting it could pave the way for a bullish rally, fueled in part by optimism surrounding Donald Trump’s upcoming inauguration.
Bitcoin Drops Below $96K Amid Market Sell-Off, Dominance Inches Higher
At the time of writing, Bitcoin is trading at $95,263, reflecting a decline of 5.73% over the past 24 hours. During this period, Bitcoin recorded a low of $95,421 and a high of $101,515. The cryptocurrency’s market dominance has increased by 0.44%, now standing at 56.66%.
Simultaneously, the global cryptocurrency market has dropped approximately 6.36%, with its total valuation now at $3.35 trillion. However, the overall crypto market volume experienced a sharp surge of 47.09%, reaching $183 billion.
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