Following bitcoin’s dip in price, QCP Capital highlighted a “doubly strange session” overnight, driven by unexpected economic data and a widely viewed Roaring Kitty livestream.
BTC's ‘Strange’ Session: Economic Data, Roaring Kitty Livestream Drive Market Fluctuations, Says QCP Capital
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Analysts Highlight Market Chaos Following Bitcoin Dip and Gamestop Decline
Three days ago, Singapore-based QCP Capital envisioned a new bitcoin ( BTC) all-time high in June. At the time, the firm’s trading desk noted a “strong bullish follow-through with significant call buying for June expiries.” In the latest weekend report, the team noted that the U.S. Non-Farm Payrolls report showed 272,000 jobs added versus the expected 182,000, while unemployment rose from 3.9% to 4.0%.
QCP further highlighted that the mixed data caused a risk-off sentiment before upcoming U.S. inflation numbers and a Federal Open Market Committee (FOMC) meeting. Additionally, the report notes the livestream by Roaring Kitty, which attracted nearly a million viewers, coincided with a sharp decline in Gamestop shares.
“It was probably not a coincidence that Alts and Meme coins started collapsing as well with over $40 billion wiped in market cap,” QCP remarked.
Despite this volatility, the report noted bullish trading activities on the dip, particularly in bitcoin, with aggressive put sellers and call spread buyers. Both bitcoin and ethereum ( ETH) rebounded from their lows of $68,300 and $3,575, respectively. QCP Capital suggests that this dip presents a buying opportunity, as markets might start pricing in at least one interest rate cut by the Federal Reserve.
“It will be difficult for the U.S. to ignore as the rest of the world continues to cut rates,” the market updated concluded.
What do you think about QCP Capital’s latest analysis? Share your thoughts and opinions about this subject in the comments section below.
