QCP Capital stated that the upcoming data to be released tomorrow could halt the rise of Bitcoin (BTC), revealing the prices that investors are focusing on to protect themselves from the decline.
The crypto market showed a strong recovery over the weekend with low liquidity. Bitcoin surpassed $122,000, compensating for last week's losses and approaching its all-time high, while Ethereum (ETH) rose by 21% in the past week, reaching $4,300 for the first time since 2021. QCP Capital noted that this rise indicates an increasing correlation with stocks and that the markets are focused on the US inflation data to be released tomorrow.
According to QCP, the market expectation is that the annual inflation will rise to 2.8%. A data point that falls below expectations could almost certainly confirm the Federal Reserve's (Fed) interest rate cut in September. However, if the data comes in high, rallies in both crypto and traditional markets could halt. As a result, some investors are positioning themselves against declines with Bitcoin put options in the $115,000–$118,000 range.
QCP emphasized that institutional investor interest and spot Bitcoin ETF inflows will determine the fate of the price. The fact that some “old whale” sales did not lead to a loss of momentum in the market immediately before the rally indicates that the structurally positive outlook continues. However, there were warnings that profit-taking could increase at critical resistance levels.