Bitcoin and altcoins started to recover after yesterday’s sharp decline. At this point, while BTC rose above $ 56,000, altcoins also experienced increases between 4% and 15%.
While wondering whether the increases are short-term or the beginning of a long-term increase, an updated analysis came from QCP Capital analysts.
Stating that the level of panic in the market has begun to decrease, QCP analysts cite Mt. He cited selling pressure from Gox and the German Governments.
Stating that speculators oversold after the transfers made by Mt.Gox and the German government, analysts wrote that these sales triggered liquidations in the markets around $ 58,000 and the decline continued until below $ 54,000.
However, according to QCP analysts, spot prices in Bitcoin and cryptos have stabilized. Analysts noted that Bitcoin has good support around $54,000 and the panic has subsided.
Stating that the latest US employment data was lower than both April and May data, QCP said that these data support the market’s predictions of a possible early interest rate cut.
Finally, QCP analysts added that following the data, interest rate cuts for both September and December have begun to price in with a higher probability.
“Reasons for the decline: The market reacted to news of imminent BTC supply, which included transfers by Mt. Gox and the German Government.
Speculators likely oversold heavily in anticipation, triggering liquidations around $58,000 in weak markets during the US holiday.
However, after the declines, spot prices stabilized and Bitco found good support around $54,000.
The panic in the market also decreased.
US employment data released on Friday showed downward revisions for both April and May numbers.
“This confirms Powell’s path to lower inflation and potentially earlier rate cuts as both September and December begin to price in a higher possibility.”
*Not investment advice
