Challenging Times May Continue for Bitcoin and Altcoins: Market Report from QCP
Cryptocurrency analysis firm QCP Capital published a market report for August 3.
QCP Capital shared a cryptocurrency market report on Telegram on August 3.
This week, the market quickly rejected Trump's support for crypto, causing the Bitcoin price to fall from a post-speech peak of $70,000 to almost $60,000 this morning.
Among the reasons why the market corrected is that significant Bitcoin supply entered the market right after the weekend. US Government approximately 28,000 BTC, Mt. Gox distribution released 33,960 BTC and Genesis creditor distribution released $1.5 billion worth of Bitcoin and Ethereum.
Additionally, mining difficulty increased by 10.5% to an all-time high, creating selling pressure on miners.
Macroeconomic negativities also stand out as another reason for the correction.
The high unemployment rate (actual 4.3%, expected 4.1%) had a negative impact on the crypto market and increased recession expectations. The VIX rose above 28 today, reaching the highest level since the regional banking crisis.
The report presented by QCP included the following statements:
Bearish macro sentiment resulting from high unemployment pressures has created spillover effects on crypto as expectations of a future recession grow. The VIX rose above 28 today, the highest level since the regional banking crisis on March 23. The cryptocurrency market has shown that despite the high price movement we have seen in the last few days, there are expectations that price volatility will calm down towards the summer months.
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