While Bitcoin Stagnates, Is Altcoin Season Finally Here? QCP Weighs In
04 April 2023 - 8:56PM
NEWSBTC
While the Bitcoin price has failed to sustainably advance into the
$29,000 region since mid-March, several altcoins are currently
experiencing a strong rally. Bitcoin dominance has risen to as high
as 46.5% in recent weeks, but is currently seeing a small
retracement. Singapore-based crypto options trading firm QCP
Capital says in an analysis today that both Bitcoin and Ethereum
are entering a difficult time for monetization as both are wedged
in a very tight range. Altcoins could benefit from this in the
second quarter: Perhaps Q2 is indeed shaping up to be the quarter
of #Alts and #Airdrops, while BTC takes a breather. Pricing has
essentially gone nowhere since March 17, when BTC closed at $27.5k
and ETH at $1.8k. Recession Gets More Likely, Bitcoin and Altcoins
in Uncharted Territory According to the company, this is largely
due to the tremendous resistance that Bitcoin and Ethereum are
facing. Even the major events of the past few days have not been
able to get Bitcoin out of its tight trading range. Neither the
FOMC meeting on March 22 with the 25 basis point hike nor the
CTFC’s lawsuit against Binance were able to change that. Related
Reading: Here’s Why The Fair Price Of Bitcoin Currently Is $42,000:
Renowned Analyst According to QCP, the markets have largely
dismissed civil lawsuits because they are likely to have the same
outcome as the BitMEX lawsuit in 2020. “We tend to agree. It is
likely to go the same way as a suit against Bitmex a few years back
where a large settlement was reached to conclude the affair,” the
analysts wrote. That’s why they saw it as a buying opportunity; but
“now on the first sign of a recessionary turn in US data last
night,” the firm warned to pay attention to the recession
narrative, which will be formed with the macro data coming up this
week. Related Reading: Data Says Bitcoin Has Begun Its Most Bullish
Month Historically Both the US dollar and bond yields turned
sharply lower yesterday following the release of the ISM
manufacturing index, which showed the sharpest decline since April
2020 amid the pandemic. And the recession outlook is likely to
cloud further in the coming days, according to QCP: We expect more
weak US data to come out this week, further cementing the recession
narrative. After many false dawns, we believe this will indeed be
the lasting one. Since both Bitcoin and cryptocurrencies in general
have never been in a recessionary environment, the asset class
should be classified as “unproven”, according to QCP Capital, which
is even more true for a stagflationary environment. However, should
the Federal Reserve act quickly in a recession, as it did during
the banking crisis last month, QCP expects Bitcoin to soar and lead
the crypto market once again. But the risk of major headwinds is
high according to QCP Capital – for both Bitcoin and Altcoins:
Price-wise all the easy work is now done, and we have gotten to the
hard work zone for bulls. Firstly, Q2 tends to be a difficult
quarter for risk markets, crypto notwithstanding. At press time,
the bitcoin price was at $28,329 and has fully recovered from the
FUD crash over an Interpol Red Notice for Binance CEO Changpeng
Zhao. Featured image from iStock, chart from TradingView.com
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