Bitcoin Rally Fueled by Macroeconomics Factors, QCP Finds

According to QCP Capital, macroeconomic variables have had a greater impact on Bitcoin’s recent run to $35,000 than the expectation of spot ETF approval.

The Federal Open Market Committee’s (FOMC) dovish posture and the lower-than-expected Treasury issuance in Q1 are credited by the firm for the surge. These factors have resulted in lower bond yields and positive implications for risky assets like Bitcoin.

Before a decline, the cryptocurrency peaked at $35,912, the 38.2% Fibonacci retracement level. Despite this increase, QCP Capital issued a warning, pointing out that the macroeconomic landscape is still largely unaltered and raising doubts about the rally’s potential to continue a long-term global uptrend in bonds and stocks.

QCP Capital also noted increased activity in the Bitcoin futures market in addition to these considerations. This implies that traders are getting ready for a big move that depends on the acceptance of spot ETFs. The company did note, though, that macroeconomic factors like bond yields have a greater impact on Bitcoin than does ETF speculation.

The company also observed how changes in the bond market affect investor perceptions of risk, which in turn affects the cryptocurrency market. They emphasized the 30-year Treasury yield reaching a 16-year high above 5% in particular.

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2023-11-04 00:53