Analytics Company Releases Hot Weekend Update: Will Bitcoin's Rally Continue?
QCP Capital has published a new analysis highlighting a remarkable week for the cryptocurrency market, with Bitcoin (BTC) up 10.48% to $69,000, bringing the critical psychological threshold of $70,000 into focus.
The firm suggests that the rally could maintain its momentum as no major macroeconomic data is expected next week.
According to the analytics firm, one of the key drivers behind Bitcoin's upward movement has been the significant inflows into BTC ETFs. QCP Capital noted that its BTC ETF had recorded $203.3 million in inflows through Friday, snapping a six-day winning streak. The consistent inflows underscore the strong institutional demand for Bitcoin. Additionally, the SEC's approval this morning for BTC ETF options to be listed on the New York Stock Exchange (NYSE) is expected to provide the liquidity needed to attract sustained inflows into the ETF, according to QCP.
Another interesting point is Bitcoin's
market dominance, which has reached
its highest level in recent years at
58%, a level not seen since April 2021.
QCP Capital believes that Bitcoin is
approaching the key resistance with
60% dominance, which could pave the
way for a recovery in Layer 1 (L1)
cryptocurrencies.
In global economic news, Japan's inflation rate remains subdued, with the headline figure down to 2.5% from 3.0% previously. Market forecasts suggest the Bank of Japan (BOJ) is unlikely to raise interest rates anytime soon, contributing to a rally in USD/JPY, which is currently trading below 150.
QCP also noted that risk sentiment has increased with U.S. stocks nearing all-time highs and the Japanese yen on a weakening trend. This sentiment is expected to strengthen further as the U.S. elections approach, pushing risk assets higher.
