Cryptocurrency trading firm QCP Capital stated that the recent declines in the cryptocurrency market will not have a lasting impact.
The cryptocurrency market, especially Bitcoin and Ethereum, saw significant declines in the early hours of March 15. While Bitcoin and Ethereum’s losses reached 10% within 24 hours, QCP Capital made a statement on the matter.
Analysts noted that this recent decline will not affect long-term goals and is likely to remain just a liquidity cleanse. It was also stated that they do not expect the declines to continue as demand for spot Bitcoin ETFs remains strong:
As long as daily Bitcoin spot ETF demand remains strong, it is difficult for these short sales to have a lasting impact on the upward trend.
Furthermore, it was mentioned that both the cryptocurrency and global markets may be pricing in the upcoming US FOMC meeting next week. QCP Capital analysts also noted a selling-oriented activity in the options markets and urged investors to be cautious:
As the market prepares for the FOMC next week (March 20), we are gearing up for a volatile weekend. Open interest data in the options markets has been quietly rising in the past 24 hours. However, options continue to attract demand for a year-end Bitcoin price of $100-150,000.
