QCP Analysts, known for their market updates, recently shared their latest forecast, previously predicting short-term negative movements post-ETF approvals. They were correct, as their comments on the spot ETH ETF proved successful until the latest BTC correction.
The spotlight is on the potential approval of a spot ETH ETF, considered pivotal as it could trigger a surge in ETH and altcoin prices similar to the past BTC rally. In their latest market assessment, they expressed anticipation for the ETH spot ETF approvals as a narrative for the next rally but remained uncertain about the approvals happening in 2024.
They suggest that if firms like BlackRock and Fidelity continue to delay their deadlines, clustering around the end-of-May deadlines set by VanEck and Ark21, an approval seems likely, mirroring the pattern seen before BTC approvals. However, if delays extend beyond end-of-June without clustering, it could indicate no intention to approve ETH spot ETFs this year.
Analysts agree that the recent downturn was triggered by significant GBTC outflows, causing panic among investors following ETF approvals. BTC prices fell to around $38,500 due to daily outflows of $500-$600 million from GBTC, which still holds a substantial reserve of about $21 billion.
Other factors affecting the market include potential large BTC supplies due to Mt.Gox’s creditor repayments and China’s recent financial moves, such as a surprise RRR cut and a $278 billion support package for its stock market. Additionally, the upcoming FOMC meeting and the US Treasury’s Quarterly Refunding Announcement (QRA) are being closely monitored, with expectations that more short-term debt issuance could boost risky assets, including cryptocurrencies.
