{"id":31881,"date":"2023-11-03T11:52:44","date_gmt":"2023-11-03T15:52:44","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=31881"},"modified":"2023-11-03T11:52:44","modified_gmt":"2023-11-03T15:52:44","slug":"bitcoin-price-rally-was-not-etf-driven-qcp-reveals-main-reason","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/11\/03\/bitcoin-price-rally-was-not-etf-driven-qcp-reveals-main-reason\/","title":{"rendered":"Bitcoin Price Rally Was Not ETF-Driven: QCP Reveals Main Reason"},"content":{"rendered":"

In their latest market update<\/a>, QCP Capital, a crypto asset trading firm headquartered in Singapore, has dissected the recent Bitcoin price movements, attributing the rally to macroeconomic factors rather than the much-anticipated approval of a spot ETF. To recall, the Bitcoin surged from $34,500 to almost $36,000 on Wednesday.<\/p>\n

The Main Reason For The Bitcoin Price Rally<\/h2>\n

The firm\u2019s technical analysis highlighted that Bitcoin reached the 38.2% Fibonacci retracement level at $35,912 and touched the upper channel trendline before retreating, a move that was keenly observed by market participants.<\/p>\n

QCP Capital\u2019s report states, \u201cThis latest rally, however, was less about spot ETF<\/a> developments and more about macro forces.\u201d These macro forces were identified following a dovish stance from the Federal Open Market Committee (FOMC) and a smaller than expected Treasury Q1 supply estimate, which led to a significant drop in bond yields. This, in turn, has had a bullish effect on risk assets, including Bitcoin and the broader crypto market.<\/p>\n

However, the firm also had a word of caution, saying, \u201cWhether this marks the start of a new global equity and bond uptrend remains to be seen, as the macro picture essentially remains unchanged, outside a correction of overly bearish bond sentiment.\u201d<\/p>\n

The firm also noted the Bitcoin derivatives market<\/a>, where \u201cperp funding, and term forwards, implied volatility and risk reversals across the curve continue to remain or extend further at extreme elevated levels.\u201d This suggests a market bracing for a significant move, with derivative traders positioned for a potential upside breakout that hinges on the approval of a spot ETF.<\/p>\n

Looking at the broader financial landscape, the bond market has been experiencing notable fluctuations. Recently, the 30-year Treasury yield has reached another 16-year high, climbing above 5%. This level of yield has not been seen since 2007, and it represents a rise of over 4 percentage points in just three years. Such movements in the bond market are critical for the Bitcoin and crypto market as they affect the risk sentiment among investors.<\/p>\n

However, Bitcoin is currently following<\/a> the example of gold as a safe haven asset. \u201dThe market is starting to price in the Fed\u2019s overtightening and weakening economics. Combined with geopolitical tensions + war, the need for QE in the future is increasing rapidly. This is causing insurance assets (Gold, Bitcoin) to absolutely rip in unison,\u201d Carpriole Investment\u2019s Charles Edwards remarked<\/a> recently.<\/p>\n

In summary, QCP Capital\u2019s insights into Bitcoin market dynamics versus current bond market trends suggest that while the Bitcoin market is influenced by a variety of factors, including speculation about exchange-traded fund approval, macroeconomic indicators such as bond yields play a larger role in determining market sentiment and price action than other pundits believe.<\/p>\n

At press time, Bitcoin was trading at $34,235 and at risk of breaking out of the established uptrend channel to the downside. If that happens, low price levels could come next.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

In their latest market update<\/a>, QCP Capital, a crypto asset trading firm headquartered in Singapore, has dissected the recent Bitcoin price movements, attributing the rally to macroeconomic factors rather than the much-anticipated approval of a spot ETF. To recall, the Bitcoin surged from $34,500 to almost $36,000 on Wednesday.<\/p>\n

The Main Reason For The Bitcoin Price Rally<\/h2>\n

The firm\u2019s technical analysis highlighted that Bitcoin reached the 38.2% Fibonacci retracement level at $35,912 and touched the upper channel trendline before retreating, a move that was keenly observed by market participants.<\/p>\n

QCP Capital\u2019s report states, \u201cThis latest rally, however, was less about spot ETF<\/a> developments and more about macro forces.\u201d These macro forces were identified following a dovish stance from the Federal Open Market Committee (FOMC) and a smaller than expected Treasury Q1 supply estimate, which led to a significant drop in bond yields. This, in turn, has had a bullish effect on risk assets, including Bitcoin and the broader crypto market.<\/p>\n

However, the firm also had a word of caution, saying, \u201cWhether this marks the start of a new global equity and bond uptrend remains to be seen, as the macro picture essentially remains unchanged, outside a correction of overly bearish bond sentiment.\u201d<\/p>\n

The firm also noted the Bitcoin derivatives market<\/a>, where \u201cperp funding, and term forwards, implied volatility and risk reversals across the curve continue to remain or extend further at extreme elevated levels.\u201d This suggests a market bracing for a significant move, with derivative traders positioned for a potential upside breakout that hinges on the approval of a spot ETF.<\/p>\n

Looking at the broader financial landscape, the bond market has been experiencing notable fluctuations. Recently, the 30-year Treasury yield has reached another 16-year high, climbing above 5%. This level of yield has not been seen since 2007, and it represents a rise of over 4 percentage points in just three years. Such movements in the bond market are critical for the Bitcoin and crypto market as they affect the risk sentiment among investors.<\/p>\n

However, Bitcoin is currently following<\/a> the example of gold as a safe haven asset. \u201dThe market is starting to price in the Fed\u2019s overtightening and weakening economics. Combined with geopolitical tensions + war, the need for QE in the future is increasing rapidly. This is causing insurance assets (Gold, Bitcoin) to absolutely rip in unison,\u201d Carpriole Investment\u2019s Charles Edwards remarked<\/a> recently.<\/p>\n

In summary, QCP Capital\u2019s insights into Bitcoin market dynamics versus current bond market trends suggest that while the Bitcoin market is influenced by a variety of factors, including speculation about exchange-traded fund approval, macroeconomic indicators such as bond yields play a larger role in determining market sentiment and price action than other pundits believe.<\/p>\n

At press time, Bitcoin was trading at $34,235 and at risk of breaking out of the established uptrend channel to the downside. If that happens, low price levels could come next.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-31881","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/31881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=31881"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/31881\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=31881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=31881"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=31881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}