QCP Market Predicts New Highs for Bitcoin Amid Liquidity Rotation
Bitcoin inflows recorded in recent weeks have encouraged analysts to predict broader market gains following upcoming events.
A new market update from the crypto trading firm, based on recent entries into the leading cryptocurrency QCP Capital He predicts greater market activity after the halving. According to the analysis, the firm hinted that markets are at the center of a broader liquidity rotation that will push Bitcoin to new highs after the upcoming halving event.
Bitcoin Liquidity to Initiate Entries
The liquidity rotation can be attributed to Bitcoin price trading over the past week as the market issued corrections in cryptocurrencies and decentralized finance (DeFi).
Analysts QCP Capital say the market is still in a bull cycle despite recent liquidations that pushed the Bitcoin price to $63,869. Bitcoin, which rose to an all-time high of $73,750 last week, fell 13.3% to today’s levels.
Some crypto commentators see a slowdown amid weekly inflows in investment products, indicating support for broader liquidity Bitcoin price. Last month, VanEck’s head of digital research, Mathew Sigel, noted increased liquidity in the United States market as bulls took advantage of the current opportunity.
The current market outlook triggered by liquidity is due to spot confirmation. Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) on January 10. Last week, $2.8 billion was recorded in Bitcoin institutional products.
QCP Warns Traders About Daily Correction
Despite the bullish prediction, QCP Capital warns that short-term corrections affecting the price before the halving suggest ways to ride out the tide. The Bitcoin halving is notable for its bullish momentum in the top crypto price as scarcity helps a broader rally.
Historically, the event occurs every four years, with price increases encouraging traders and miners to double their positions. However, some miners transferred their Bitcoin reserves to exchanges to increase capacity.
Upcoming Federal Open Market Committee (FOMC) meeting may cause fluctuation in the asset’s spot price as macroeconomic indicators play a role in corporate investments. According to the statement, two interest rate cut signals instead of three could trigger a downward trend.
Also read: Citigroup Raises NVDA Price Target to $1,030 Amid GTC Excitement
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