Bitcoin surges on Mt. Gox rumors, but QCP Capital predicts $22k.
The cryptocurrency market, which is mainly dominated by Bitcoin, has a history of being a speculative and sentiment-driven terrain. Recently, there have been rumors and speculations regarding Bitcoin's slight increase in value. Some market insiders believe that the potential delay of the Mt. Gox repayments could be a significant driver behind this trend. Bitcoin surges on Mt. Gox rumors, but QCP Capital predicts $22k.
However, QCP Capital, a crypto trading firm, remains skeptical about a sustained rally and holds a bearish outlook. They indicate that global economic factors could work against the cryptocurrency.
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Bitcoin surges on Mt. Gox rumors, but QCP Capital predicts $22k. Mt. Gox Delay Rumors Fuel Bitcoin Rally
Mt. Gox, the former leading Bitcoin exchange that experienced a sudden decline in 2014, has resurfaced in recent news. After the deadline for its creditors to provide repayment information passed in April, there were hopes for repayments by the end of October.
However, there are now rumors indicating a possible delay in this timeline, pushing it to 2024. These speculations have had a notable impact on the price fluctuations of Bitcoin. QCP Capital, in its market analysis, has made note of this influence.
A large reason we’re seeing for this bounce is rumors of a Mt. Gox delay to 2024.
The trading firm is of the opinion that some traders may have taken a short position in anticipation of repayments, and any official announcement of delay could lead to a significant short squeeze in the market. However, experts are cautious about the nature of this rally. Mt. Gox has a large amount of assets, including 142,000 BTC (worth approximately $3.9 billion), 143,000 BCH, and 69 billion Japanese yen, set for distribution. The influx of such a vast amount of assets into the market could lead to unpredictable price movements.
QCP Capital’s Cautionary Stance
QCP Capital maintains a bearish outlook on Bitcoin despite the recent price rally. The firm predicts that BTC will reach the $22,000 mark in the coming month, but this increase is expected to be temporary due to global risks that are looming over the cryptocurrency market in Q4. Additionally, QCP Capital has analyzed the market movements in detail.
The current Wave 2 of our C Wave expanded flat has so far bounced which we expected, but we still need to see the crucial Wave 3 that breaks the local lows for our count to be intact.
According to QCP, a break above $32,000 would contradict their current assessment. The upcoming Federal Open Market Committee (FOMC) interest rate decision is a significant factor, with QCP drawing parallels to the market conditions of 2020, just before the Covid crash.
Although there is speculation about potential volatility, QCP believes that the FOMC is more likely to pause rate hikes.
However, challenges remain. The firm notes that it is unclear how Powell can confidently declare an end to the hiking cycle, given rising inflation and other economic factors. Furthermore, concerns about a possible US government shutdown and increasing oil prices contribute to economic uncertainty.
In QCP's view, the stock market could experience a downturn without Federal Reserve intervention, which could potentially drag Bitcoin down with it. The firm concludes:
In such a scenario without Fed easing, equities will likely be down, taking Bitcoin down along with it until the Fed acts.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.