Singapore-based crypto asset trading firm QCP Capital believes that the two largest cryptocurrencies, Bitcoin (BTC) and Ether (ETH), are currently experiencing a “buy the dip” moment. According to QCP Capital, the recent dip in the asset’s value is the mixed economic data from the official reports released in the United States last week.
On Friday, non-farm payrolls data revealed 272,000 jobs added in May, a 47% increase from the 185,000 forecasted. Despite the increase, the unemployment rate rose marginally from 3.9% to 4%. The mixed data reportedly caused investors to step away from BTC, ETH, and risky assets.
Interestingly, QCP Capital believes that this investor pullback is advantageous. In a recent market update tying the dip to an expected interest rate cut, the firm wrote:
“We agree that this is a good opportunity to buy the dip as the markets will increasingly price in at least one Fed rate cut from here. It will be difficult for the US to ignore as the rest of the world continues to cut rates.”
The dip in Bitcoin’s price might also be advantageous in general, because the asset could become more accessible, especially in novel industries like micropayments, gaming, and online gambling. Any interested crypto gambler can find a Bitcoin casino to enjoy benefits of online gambling and blockchain technology.
QCP, Others, Offer Bitcoin Price Predictions
QCP Capital’s Bitcoin forecast is bullish as it may encourage people to buy the current dip with the hope that the king coin will rise sometime soon. While the firm is optimistic, it recently offered a less-than-positive outlook on Bitcoin. On May X, the digital asset trading firm posted a message on its Telegram channel, suggesting a crash in Bitcoin’s price when Mt. Gox finally pays out Bitcoin owed to customers. Mt. Gox, one of the most prominent crypto trading platforms more than a decade ago, crashed after several hacks between 2011 and 2014. Mt. Gox is set to return about 137,892 Bitcoin to customers, worth nearly $9.6 billion according to current market prices. QCP Capital worries about the effect of such a large amount of Bitcoin hitting the market.
There is generally no shortage of positive predictions for Bitcoin. A forecast from popular Bitcoin enthusiast and creator of the stock-to-flow (S2F) model PlanB puts Bitcoin at about $150,000 by the end of this year. In an X post, PlanB predicted that Bitcoin would rise to $800k by next year. Unfortunately, the analyst’s forecast crashes to $400k in 2026 and further to $300k in 2027.
Financial Services Giant Standard Chartered is also bullish on Bitcoin. The bank’s head of forex and digital assets research, Geoffrey Kendrick, recently predicted that Bitcoin would rise to $100,000 before the November election. He then offered a forecast that agrees with PlanB’s, adding that the BTC will hit $150,000 if Trump wins the election. Kendrick’s speculation is likely based on former president Donald Trump’s support of the crypto industry, specifically saying in a recent address: “if you are in favor of crypto, you better vote for Trump.” In the same address, the Republican presidential candidate criticized President Joe Biden, describing him as unsupportive of the industry.
Potential ETH Price Trajectory Following ETF Approval
For Ethereum, the recent approval of spot exchange-traded funds (ETFs) is generally seen as a factor in the asset’s favor. Last month, before the United States Securities and Exchange Commission (SEC) approval, QCP Capital predicted that an approval can push ETH to $5,000. In an X thread, the company offered $4,000 as a “natural short term target,” and $5,000 later in the year. At the time, QCP Capital said the uncertainty around the approval was causing high price volatility.
Following the SEC’s approval, QCP Capital has said that the rise in ETH’s price is not sustainable. Shortly after the approval and following positive crypto sector comments from Donald Trump, the price of ETH went from $3,810 to $3,940. However, QCP Capital offered that there will not be any major breakout in the price of ETH until the SEC approves S-1 filings.
The initial approval from the Commission was for 19b-4 filings, greenlighting a rule change that will allow ETH ETFs to trade on the traditional market. However, the SEC must approve S-1 filings for actual trading to begin. An approval for spot ETH ETFs will likely attract heavy inflow to the ETH market much like the BTC ETFs. ETH could enjoy the same level of attention and inflow, with increased adoption in all use cases, from decentralized finance (DeFi) to crypto gambling.
After the expected S-1 approvals, the head of derivatives at crypto exchange Bitfinex, Jag Kooner, believes that ETH will fiercely compete with BTC, seizing up to 20% of Bitcoin’s spot ETF flows. Kooner’s prediction suggests that when spot ETH ETFs begin trading, some of the attention on the BTC product will shift. Interestingly, Kooner’s prediction also depends on whether or not the SEC will allow the ETH ETFs to offer staking rewards. This will give investors the opportunity to simply deposit their ETH into liquidity pools to earn rewards.
Photo by Michael Förtsch on Unsplash
