QCP Capital: Bitcoin Holds Steady Over $90K, But A Cautious Investment Strategy Is Advisable

A cryptocurrency trading firm based in Singapore QCP Capital recently released a market analysis that underscores the ongoing instability in traditional financial markets as investors digest the latest economic developments in the US and look forward to possible global trade policy changes. 

The US stock market has indicated signs of deceleration, with the S&P 500 struggling to sustain levels above 6,000. This volatility also affected cryptocurrency markets, leading to Bitcoin momentarily dropping to $92,000, while Ethereum faced a significant fall to $2,100. 

A postponement in implementing tariffs on Mexico and Canada has provided a temporary boost to markets. Yet, tension with China continues to loom large. trade dispute Market watchers are eagerly observing the upcoming discussion between US and Chinese leaders, hoping for positive developments, as highlighted by QCP Capital. 

Moreover, a recent gathering led by David Sacks left investors craving for clearer regulatory insights. A working group has been established to formulate clearer regulations, beginning with those concerning stablecoins. Another team is exploring the viability of a Strategic Bitcoin Reserve (SBR), which, although still in preliminary stages, could yield beneficial long-term effects for the digital asset landscape.

While Bitcoin’s ability to remain above the $90,000 mark is impressive, QCP Capital expresses caution regarding possible geopolitical disruptions, particularly associated with US-China relations. The lack of immediate incentives specific to cryptocurrency adds to the market's fragility, heightening the risk of price drops. Given the recent wave of significant liquidations, it's wise to adopt a cautious trading approach and implement robust risk management practices during this period.

Bitcoin Falls Below $99,000 Amidst $428 Million in Liquidations

As of the latest update, Bitcoin Currently priced at $98,023, reflecting a 1.14% drop over the last 24 hours, Bitcoin's daily trading range fluctuated from a low of $96,330 to a high of $100,677. This decline correlates with liquidations, as Bitcoin experienced $428.02 million in on-the-spot liquidations, per Coinglass data. Furthermore, Bitcoin's market dominance has seen a slight decline of 0.22%, now at 60.18%.

Despite a hint of recovery in the broader cryptocurrency market yesterday, a spike in volatility on February 5th triggered a market-wide decline. Major cryptocurrencies predominantly faced losses, which contributed to a 0.87% drop in the total global market capitalization, now sitting at $3.23 trillion. Trading activity also saw a significant contraction, with total volumes declining by 28.13% from the preceding day to $166.32 billion, based on CoinMarketCap data.