Crypto Market’s “Shallow Sell-Off” Indicative Of Strong Bid For Risk Assets: Trading Firm
2024年10月3日 - 5:00PM
NEWSBTC
Crypto trading firm QCP Capital says the “shallow sell-off” in
crypto markets following Iran’s recent attack on Israel indicates
healthy market demand for risk-on assets. Crypto Market Remains
Well Bid For Risk Assets Despite Iran launching over 180 missiles
toward Israel yesterday, the sell-off in traditional financial
(TradFi) assets was relatively muted. The S&P 500 closed 1%
lower, while U.S. benchmark West Texas Intermediate (WTI) oil
prices rose 2%. In contrast, the digital assets market was hit
relatively harder, with Bitcoin (BTC) sliding more than 5%
following Iran’s attack. The total crypto market cap eroded over 6%
in value while liquidations surpassed $550 million in the past 24
hours, data from CoinGlass indicates. Related Reading: Bitcoin
Price Falls To $60K: Is A Rebound Possible? In the report, QCP
Capital says that the premier cryptocurrency seems to have found
strong support at the $60k level. However, the firm cautions that
further escalation in the Middle East might force BTC to drop to
$55k. Regarding the market sell-off witnessed yesterday, the
trading firm stated: Middle East geopolitics will steal the
limelight for now, but the shallow sell-off suggests that the
market remains well bid for risk assets. This minor setback
shouldn’t distract from the bigger picture. The report also
remarked that China’s recent economic policy actions are similar to
those of Japan in the 1990s. Notably, the Bank of Japan (BoJ)
tackled deflation by reducing interest rates, introducing negative
interest rates, and starting the quantitative easing program. The
report added: The flush of liquidity from the PBoC and potential
fiscal support will likely support asset prices in China, with
bullish sentiment potentially spilling over globally to support
risk assets, including crypto. Additionally, the report pointed to
the US Federal Reserve (Fed) Chair Jerome Powell’s recent dovish
remarks at the National Association for Business Economics,
signaling further interest rate cuts in 2024. For context, the Fed
cut rates for the first time in 4 years on September 18.
Subsequently, financial markets worldwide experienced a surge in
the price of risk-on assets, such as stocks and
cryptocurrencies. The report concluded that “asset prices are
expected to remain supported heading into 2025”, buoyed by
aggressive interest rate cuts by both the largest (Fed) and third
largest (People’s Bank of China) central banks in the world. What
To Expect From Bitcoin In Q4 2024? Although the Iran-Israel
conflict directly impacted BTC’s price, crypto analysts remain
optimistic about a potentially strong Q4 2024. One analyst
suggested that the recent dip could represent BTC’s “quarterly
low.” Related Reading: Bitcoin Starts October In The Red After
Crash To $61,000, Is ‘Uptober’ A Myth? Another crypto analyst Eric
Crown opined that BTC could reach new all-time-high (ATH) value in
Q4 2024, basing his analysis on the cryptocurrency’s historical
performance in the months following September. Bitcoin trades at
$61,992 at press time, down 1.2% over the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
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