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During the decline in Bitcoin and ether prices, QCP Capital noted that its trading desk was seeing “bullish flows.” Claiming that complex US data caused a decline in bitcoin and ether ahead of inflation data and the FOMC meeting, the trading firm explained that this was a “buy on the dip” opportunity.
Singapore-based crypto trading firm QCP Capital noted in a recent market update that Bitcoin and Ether are in a “buy the dip” moment amid data from the US and expectations for at least one interest rate cut. Nonfarm payrolls data released last Friday, a key indicator of the U.S. labor market, showed a stronger-than-expected monthly increase of 272,000 in May, topping the 185,000 forecast. However, this increase was matched by an increase in the unemployment rate from 3.9% to 4.0%.
These mixed US economic data triggered a “risk-off” situation in the market that caused investors to move away from riskier assets. This has created uncertainty ahead of inflation data and the next Federal Open Market Committee (FOMC) meeting expected this week, according to QCP Capital. “Our desk has seen bullish flows this decline, including aggressive put sellers and call spread buyers, particularly on BTC,” QCP said.
According to TradingView, the price of bitcoin fell from approximately $72,000 to $69,000 following the release of US data. At the time of publication, bitcoin was trading at $69,424. Ether showed similar movements and is currently trading at $3,673.
“This will be hard for the US to ignore as the rest of the world continues to cut interest rates,” QCP Capital said. Many other central banks, including the European Central Bank and the Bank of Canada, have cut interest rates recently.
However, for the upcoming FOMC meeting, CME Group estimates there is a 99.4% probability that the US will keep the current interest rate between 5.25% and 5.50%. In line with QCP’s forecast, a Reuters poll of economists shows the Fed will cut interest rates twice this year, starting in September.
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