In a critical week for Bitcoin and the cryptocurrency market, with the release of US CPI and PPI data and the Federal Reserve’s interest rate decision, the crypto landscape has seen significant fluctuations. As BTC approached $70,000 after the positive CPI data on Wednesday, it fell back to $67,000 after the Fed’s decision and has since continued its downward momentum, opening the last day of the week at $66,870. Analyzing the current situation, QCP Capital analysts have shared their expectations for the coming months, suggesting a quiet summer period for BTC and the broader cryptocurrency markets.
Miners Capitulation and Other Factors Weighing on BTC
According to the QCP Capital analysts, Bitcoin’s struggle to maintain its upward momentum after the FOMC meeting, despite the strong momentum in stocks, is attributed to several factors. They highlight the role of Bitcoin miners, who have been selling BTC to continue their activities after the halving in April, putting downward pressure on the price. Additionally, the analysts point to the ongoing bankruptcy proceedings of Flowbank, one of the banks with which Binance has a tripartite agreement, as another contributing factor to the market’s decline.
Expectations for a Quiet Summer Ahead
Addressing the outlook for the BTC and cryptocurrency markets in the coming months, QCP Capital analysts expect a quiet summer period. They anticipate a continuation of the horizontal trend, with no clear catalyst that would drive BTC and the broader market significantly up or down. Interestingly, the analysts also touch on the anticipated spot Ethereum ETF approval, which Gensler expects to occur at the end of the summer, but they do not foresee this event causing a significant boom in the ETH price.
