Bitcoin Price Outlook: QCP Capital Anticipates ‘Subdued’ Performance Amid Mt. Gox Payouts
After a long wait, July might finally bring restitution to the users of the now-defunct Mt. Gox exchange. This news, however, seems to have put market players on edge as they fear further sell-offs in the market.
It’s worth noting that Bitcoin has been on a downward trend since the start of June and has struggled to gain any significant upward momentum despite some inflows from ETFs. On July 3rd, the price dropped below $60,000 briefly before seeing a slight recovery. The next day, however, the price took another hit.
The most recent data suggests that Bitcoin may have a “subdued” third quarter, with uncertainty surrounding Mt. Gox’s fund distribution being a major factor.
According to QCP Capital, a Singapore-based crypto asset trading firm, Bitcoin’s price is expected to remain relatively stable. Despite the US equity market hitting new highs after Federal Reserve Chair Jerome Powell’s statement about disinflation, Bitcoin and Ethereum have not seen much improvement, with their prices hovering around $57,000 and $3,000 respectively.
Interestingly, the options market shows a strong bias towards the upside, indicating expectations of a year-end rally. There has been significant buying interest in longer-term options at the 100k and 120k strike prices.
However, QCP Capital believes that Bitcoin’s performance in the third quarter will be subdued due to the uncertainty surrounding Mt. Gox’s fund release and its potential impact on the market.
July marks a significant moment for Mt. Gox users who have been waiting for over a decade to recover their funds after the exchange collapsed in 2014, losing 850,000 Bitcoin worth $9.4 billion. Around 127,000 creditors are owed this amount, and the distribution process is set to begin in early July.
While this news is a relief for the affected users, there are concerns about the selling pressure it might bring to the market.
In conclusion, the future of Bitcoin’s price remains uncertain as the market awaits the impact of Mt. Gox’s fund distribution. Investors and traders are advised to proceed with caution and closely monitor the market developments in the coming months.