QCP Capital Analyzes Market Chaos After Bitcoin Drop and Gamestop Decline
In a recent report, QCP Capital, a Singapore-based trading firm, had predicted a new all-time high for bitcoin (BTC) in June. The firm's trading desk had observed strong bullish activity with significant call buying for June expiries. However, the market took a surprising turn after unexpected economic data and a widely watched livestream by Roaring Kitty.
The latest U.S. Non-Farm Payrolls report showed an increase of 272,000 jobs, surpassing the expected 182,000, but unemployment also rose from 3.9% to 4.0%. This mixed data led to a risk-off sentiment ahead of upcoming U.S. inflation figures and a Federal Open Market Committee (FOMC) meeting. The Roaring Kitty livestream, which attracted nearly a million viewers, coincided with a sharp decline in Gamestop shares, causing a ripple effect in the market.
QCP Capital noted that this unexpected turn of events resulted in a collapse of Altcoins and Meme coins, wiping out over $40 billion in market cap. Despite the volatility, there was a surge in bullish trading activities during the dip, especially in bitcoin. Aggressive put sellers and call spread buyers helped bitcoin and ethereum (ETH) recover from their lows of $68,300 and $3,575, respectively.
The trading firm sees this dip as a buying opportunity, as markets may soon start factoring in a potential interest rate cut by the Federal Reserve. QCP Capital believes that the U.S. may not be able to ignore this trend, especially as other countries around the world continue to cut rates.
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