Middle East Tensions Hitting BTC Harder Than Traditional Markets

QCP Capital, in a recent market analysis, stated that the impact of current geopolitical tensions is hitting Bitcoin (BTC) and other cryptocurrencies much harder than traditional markets. Despite the escalating Middle East situation, traditional markets like the S&P 500 index closed only 1% lower, while the West Texas Intermediate (WTI) crude oil prices registered an increase of 2%. QCP analysts noted that the crypto markets experienced greater volatility in the same period, with BTC registering a substantial 4% drop. The decline halted only because it found support at the $60,000 mark.

If the situation escalates to a regional war, BTC could drop to $55,000 or even lower.

“We seem to have found some support at the $60K level, but further escalation could push us much lower, possibly to the $55K level.”

QCP also discussed China’s current economic situation, comparing it to Japan’s deflationary period of the 1990s. They also pointed out several similarities in policy measures, including rate cuts and quantitative easing programs introduced by the People’s Bank of China.

Additionally, BTC is also witnessing intense selling pressure from some whales. According to Whale Alert, one whale moved 3,333 BTC worth approximately $213 million to Coinbase. The transfer could mean the whale is looking to sell the coins and book profits. Such large transactions could create significant short-term market pressure and come when traders expect more gains during October.