Will We See a Summer Rally in Bitcoin (BTC) and Altcoins? Analysts Share Their Expectations!
This week has been an eventful one for Bitcoin and the cryptocurrency market, with the release of US CPI and PPI data and the Federal Reserve’s interest rate decision. Bitcoin initially surged to $70,000 after the positive CPI data but retreated to $67,000 following the Fed’s decision. It has since continued its downward momentum, starting the final day of the week at $66,870.
Analysts from QCP Capital have assessed the current state of Bitcoin and the cryptocurrency market, predicting a quiet summer period. Despite the strong momentum in stocks, BTC couldn’t sustain its upward trajectory after the Federal Open Market Committee (FOMC) meeting and struggled to recover. QCP analysts pointed to Bitcoin miners as a factor contributing to the downward pressure on the price. They noted that miners sold BTC to support their operations after the halving in April, which added selling pressure to the market. Additionally, the bankruptcy proceedings faced by Flowbank, a bank associated with Binance, were cited as another reason for the decline.
Looking ahead, analysts expect a continuation of the horizontal trend and emphasized the absence of a clear catalyst that could drive BTC and the market in either direction. They mentioned that Securities and Exchange Commission (SEC) Chairman Gary Gensler anticipates approval for a spot Ethereum exchange-traded fund (ETF) by the end of summer, but they do not expect this to trigger a significant surge in ETH’s price.
It is important to note that the information provided here should not be interpreted as investment advice.