As the final quarter of 2023 approaches, the cryptocurrency market is rife with speculation and predictions. One of the most notable forecasts comes from QCP Capital, a crypto trading platform. In a recent update, the firm shared its perspective on the potential trajectory of Bitcoin(BTC) in the coming weeks.
FTX, a once-prominent crypto exchange, has been under the spotlight due to its recent bankruptcy proceedings. The exchange’s collapse has sent shockwaves throughout the crypto community, with many investors bracing for potential selling pressure. As part of its bankruptcy proceedings, FTX has sought permission to liquidate some of its crypto holdings, a move that could significantly impact the market.
According to court filings, the liquidation process will be handled by Galaxy Digital, led by Mike Novogratz. The initial liquidation limit is set at $50 million for the first week, with the potential to increase to $200 million in subsequent weeks. Notably, FTX’s crypto assets include approximately $1.16 billion of Solana’s SOL token, of which around $216 million is liquid and could enter the market.
QCP Capital’s recent update paints a bearish picture for Bitcoin in the upcoming weeks. The firm expects BTC prices to drop below the $23,000 mark by October. This prediction is based on a combination of crypto-specific events and broader macroeconomic factors.
One of the significant concerns is the upcoming decision by the United States Federal Reserve on interest rates. Additionally, industry-specific events, such as FTX’s token asset sales and the Mt. Gox bankruptcy repayments, are expected to exert downward pressure on BTC prices.
However, QCP Capital remains optimistic about the long-term prospects. The firm believes that while the market might experience a bottom in early October, the “true bottom” will likely be established in mid to late October. This period is expected to mark the end of the current negative news cycle. Looking ahead, QCP Capital anticipates a bullish trend towards the end of the year and into the first quarter of 2024.
Despite the bearish outlook, Bitcoin has shown resilience. After dropping below the $25,000 mark, BTC prices rebounded, trading above $26,000. Other cryptocurrencies, such as Ethereum, have experienced slight declines, while altcoins like Solana’s SOL and Cardano ’s ADA have seen price increases.