According to a recent analysis by QCP Capital, Bitcoin has witnessed a decline towards the pivotal $95,000 support level, following the release of strong US employment data. The JOLTS job openings unexpectedly surged to 8.1 million, surpassing forecasts of 7.74 million, which has catalyzed a market reaction characterized by heightened risk aversion. This shift prompted an ascent in long-term bond yields, consequently leading to a pronounced sell-off in risk assets.
Additionally, the inflows into Bitcoin ETFs plummeted dramatically from $987 million to just $52.9 million, marking a staggering decrease of 94%. Notably, BlackRock’s BIT experienced an inflow of $596 million, while funds like ARK and 21Shares’ ARKB faced outflows totaling $213 million. Analysts at QCP Capital indicate that the outcomes of this week’s FOMC meeting and the upcoming non-farm payroll data could significantly impact Bitcoin’s future trajectory.
The market sentiment remains cautiously optimistic, with expectations that the impending Trump inauguration may rejuvenate bullish sentiment. QCP Capital insists that the current price correction for Bitcoin could merely serve as a foundation for the next bull market phase, underscoring the importance of monitoring macroeconomic indicators closely.