BTC witnessed a sharp decline today, with ETH’s value dropping to $2,900. Despite the anticipation surrounding the upcoming ETH ETF listing, worries about multi-billion-dollar sell-offs could push the crypto market into negative territory. This situation marks one of the most substantial loss series in the market since the MTGOX hack. Previous speculations about the repayment schedule also led to market downturns.
What Do QCP Capital Experts Predict?
BTC is striving to recover $57,000 after the recent slump, but investors remain wary after recent new lows. ETH has momentarily bounced back to $2,985, and while most altcoins are still in the red, SOL Coin managed to rise to $135, negating its 24-hour losses.
QCP Capital analysts shared their insights in the latest market update. They noted the significant drop in cryptocurrencies following the reopening of Asian markets. Both BTC and ETH saw slight recoveries before the US markets opened. Key reasons for this decline include new BTC supply from Mt. Gox and the German Government, and speculative liquidations around $58,000 during the US holiday.
How Will Employment Data Influence Crypto?
A major downward revision in non-farm employment data was a highlight today, contributing to BTC’s rise post-US market opening. Fed Chair Powell has often pointed to potential early rate cuts amidst weakening employment figures. Although the unemployment rate rose and wage growth slowed, non-farm employment numbers remained robust.
Key Takeaways for Investors
- Monitor BTC and ETH price movements closely, especially with upcoming ETF listings and potential sell-offs.
- Stay updated on macroeconomic indicators such as US employment data, which could influence Fed policy and crypto market dynamics.
- Evaluate the impact of new BTC supply from major sources like Mt. Gox on market stability.
With the revised employment data, the Fed’s stance may soften, potentially lessening the effect of new sales supplies in the cryptocurrency market. This could provide some relief to the ongoing volatility and offer a more stable outlook for investors.