QCP Capital: Positive Market Shift Unlikely Before Q3

A cryptocurrency trading entity based in Singapore QCP Capital Recently published a market analysis indicating that the Non-Farm Payroll (NFP) data released on Friday brought some relief to both the stock market and digital currencies, strengthening the prospects of additional interest rate cuts in May. Bitcoin showed resilience, hovering around the $86,000 mark for a considerable part of Saturday, hinting at a potential gradual recovery week ahead. However, this optimism was interrupted when hackers linked to the Bybit breach took advantage of low liquidity trading hours on Sunday, liquidating up to $300 million from their staggering $1.5 billion cryptocurrency theft. This triggered renewed selling pressure on Bitcoin and Ethereum, nudging both towards crucial support levels.  

The ongoing decline in prices may be partly due to market players preemptively selling, anticipating further actions by the hackers. With the stolen assets already having lost 25% of their value, it seems the culprits are looking to liquidate rather than hold on to their illicit gains. Consequently, the options market is witnessing a shift, with a surge in the demand for put options over the past 24 hours, reflecting growing unease about additional selling pressure.  

QCP Capital’s analysts point out that while Bitcoin's $80,000 level plays a pivotal role in the short term, the upward momentum appears to be stalling as the narrative around the Strategic Bitcoin Reserve has already been integrated into market sentiment. Recent options data indicates that a more optimistic outlook might not be on the horizon until the third quarter of the year.  

Until a significant new catalyst emerges for the cryptocurrency sphere, Bitcoin is likely to continue moving in sync with stock markets in the near term. Both assets are trading close to their recent lows, and with existing uncertainties regarding trade tariffs, we could see increased market volatility leading up to key economic reports in the US, such as the Consumer Price Index (CPI) scheduled for Wednesday and the Producer Price Index (PPI) set for Thursday.

Bitcoin Slips to the $82,000 Threshold, With Crypto Market Witnessing $685 Million in Liquidations Amid Rising Volatility

At the time of writing, Bitcoin is currently priced at $82,345, marking a decline of 3.71% in the last day. The cryptocurrency faced a sharp dip from $85,465, hitting an intraday low of $80,126 based on CoinMarketCap data. Insights from Coinglass reveal that around $272 million in Bitcoin positions were liquidated during this timeframe. Despite the price drop, Bitcoin's market dominance saw a slight increase of 0.07%, indicating a surge in volatility within the altcoin market.  

The broader cryptocurrency market also encountered downward movement, reflecting a loss of 3.37% in overall value over the previous day, which lowered its total market cap to $2.71 trillion. Liquidations throughout the cryptocurrency sector surpassed $685 million in the past 24 hours, underscoring the persistent volatility in the market.