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In its latest report, market analysis platform QCP suggested that the recent downturns in both stocks and cryptocurrencies are likely to be short-lived.
Bitcoin’s (BTC) pullback from $64,000 to $58,000 has left investors puzzled. As interest among crypto investors wanes, analysts are beginning to weigh in with significant insights.
Crypto analyst Ali Martinez has predicted that BTC could dip as low as $55,400. Meanwhile, QCP reassured its investors in a note, stating that the recent declines are not as alarming as they may seem.
According to QCP’s report:
“We believe any downturn in stocks or crypto will be temporary. With Powell and the Fed poised to initiate a rate-cutting cycle, the resulting liquidity will eventually drive risk assets higher. We are on the brink of a rate-cut cycle. Despite only three meetings left this year, the market is already pricing in four rate cuts for 2024.”
Fed’s Actions Poised to Ignite Crypto Market
Federal Reserve Chair Jerome Powell’s dovish stance at the Jackson Hole Symposium has calmed the markets. However, despite signals pointing to potential rate cuts, capital has yet to flow into the crypto sector.
QCP argues that with the expected drop in U.S. interest rates, money will soon start pouring into cryptocurrencies, leading to potential rallies on the horizon.
While remaining cautious about U.S. stocks reaching new highs, QCP pointed out that a global market upswing could also give a boost to crypto assets.
The investment firm advised investors to stay vigilant:
“Given the crosswinds we’re currently facing, predicting the timing of the next rally is challenging.”
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