Analytics Company Released its Weekend Update – What to Expect in Bitcoin and Cryptocurrencies in the New Week?
As stated in the statement made by cryptocurrency analysis firm QCP Capital, there were significant fluctuations in the cryptocurrency market last week.
Bitcoin (BTC) retested the local high of $69,500, which had not been reached since July, but failed to break through, leading to a pullback.
According to cryptocurrency analytics firm QCP Capital, BTC found support at $65,000 and is currently forming a consolidation pattern.
Despite the volatility, QCP Capital noted continued interest from institutional investors. Bitcoin spot ETF net inflows reached $997.7 million this week, marking the third consecutive week of positive flows. This trend is seen as a clear indication of increasing institutional demand for exposure to Bitcoin.
Bitcoin’s dominance in the market climbed to a high of 59.75% last week, indicating stronger market confidence in the largest cryptocurrency. In contrast, Ethereum (ETH) struggled against Bitcoin, with the ETH/BTC pair breaking the key support at 0.03850 and falling 5.85% to a new low of 0.03625. QCP Capital believes that Bitcoin’s rising dominance will continue as it approaches its new all-time high (ATH).
The week also saw turbulence for the Tether stablecoin (USDT) following news of an alleged investigation by the US government. The news caused a sudden drop in the value of USDT, dropping to as low as $0.9965 before recovering above $0.9980. Tether CEO Paolo Ardoino denied the claims.
Geopolitical developments have added to market anxiety, with Israel launching retaliatory strikes on Iran in response to earlier missile strikes. Rising tensions in the Middle East, coupled with uncertainty around Tether, have contributed to selling pressure in both traditional and digital markets. The Dow Jones Industrial Average (DJIA) and S&P 500 fell 0.61% and 0.03%, respectively, while Bitcoin briefly fell to $65,500 amid a broader market pullback.
Nonfarm payrolls data due next week could provide critical insight into the Fed’s policy direction. Current market expectations put the probability of a 25 basis point rate cut in November at 95.1%, indicating a high degree of confidence that the Fed will remain dovish.
*This is not investment advice.
