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Bitcoin Price Prediction: QCP Capital Sees 2% Drop Below $68K as Temporary Setback

June 04, 2024

Bitcoin Price Prediction: QCP Capital Sees 2% Drop Below $68K as Temporary Setback

Bitcoin’s price uptrend remains strong despite a recent dip, according to QCP Capital. The movement of coins from the defunct Mt. Gox exchange caused a 2% drop in BTC prices, but QCP sees this as a minor setback rather than a significant market shift.

QCP Capital cites three bullish factors bolstering Bitcoin: strong U.S. stock performance, political support, and the imminent launch of Ether ETFs. The firm believes these factors are in early stages, with Ether ETF trading yet to commence following a recent regulatory approval.

Key Points:

The recent BTC price dip due to Mt. Gox movements is seen as temporary.

Strong U.S. stock performance and political support boost crypto optimism.

Approval of Ether ETFs adds to the positive outlook for Bitcoin.

QCP is not alone in its optimism. Fundstrat Global Advisors predicts Bitcoin could reach $150,000 by the end of 2024. Traders also expect momentum to increase in June, potentially driving Bitcoin to a new high of $95,000.

Popular trader Jelle commented, “Bitcoin is holding the bullish flag despite Mt. Gox transferring a significant number of coins. The market is rangebound but will turn fully bullish if we get above $70,000 again. Patience is key, but it looks strong.” An accompanying chart suggests a potential impulsive move as the consolidation period concludes, indicating further bullish momentum.

Currently, Bitcoin (BTC/USD) is trading at $68,721, down slightly by 0.05%. The critical pivot point is $68,383. Immediate resistance levels are at $69,566, $70,577, and $71,938, while support levels are at $68,127, $67,213, and $66,338.

Technical Indicators:

RSI: At 49.37, indicating neutral market sentiment.

50 EMA: Positioned at $68,383, a significant resistance level for confirming an upward trend.

A bullish break above the pivot point at $68,350 could drive Bitcoin towards higher resistance levels, while failure to hold above this level might test lower support levels. The RSI and 50 EMA suggest a cautious outlook, with upward movement contingent on breaking key resistance levels.

UK Digital Bank Kroo to Ban Crypto Transactions Effective May 30

London-based challenger bank Kroo has banned its customers from engaging in crypto transactions to enhance account and money safety. Effective May 30, 2024, the bank will no longer process transfers or card payments related to crypto asset providers.

Kroo's updated terms and conditions state that accounts involved in purchasing or trading crypto may be frozen or restricted. Additionally, accounts receiving credits from crypto transactions could also be blocked. The bank warned, “If we detect such activity we will not process the payments involved, and if you persistently make such transactions we may close your account.”

This decision comes amidst a significant rise in crypto-related scams and frauds. Recently, Lloyds Bank issued a warning about the 23% increase in crypto scams last year, which predominantly target younger investors. On average, victims lost £10,741 per scam, exceeding losses from other types of fraud.

Kroo joins other UK challenger banks, such as Starling Bank and Chase UK, in banning crypto transactions. Starling banned crypto transfers in 2022, citing high risk, while Chase UK restricted customers' access to crypto last October due to concerns over illicit use. Similarly, NatWest Bank limited crypto spending to £1,000 per day and £5,000 over 30 days.

The move reflects broader regulatory challenges and concerns over crypto's trustworthiness, recently highlighted by the UK Financial Conduct Authority’s marketing transparency regulations. David Janczewski, CEO of Blockchain protection company CoinCover, argued during Chase’s crypto ban that instead of outright bans, robust safety measures could prevent theft and loss, potentially retaining customers.

Kroo’s actions underscore the ongoing mistrust of cryptocurrencies in the financial sector.

5 things Ethereum ETFs could mean for altcoins

The recent surge in Ethereum’s price, following unexpected progress in the approval process for spot Ether exchange-traded funds (ETFs), has taken the market by surprise. Many had assumed the SEC would reject these applications, but Bloomberg analysts increased the approval odds from 25% to 75%, spurring a 20% rise in ETH's price to over $3,800.

This rally underscores the high stakes involved in the spot ETH ETF approval, which could significantly impact decentralized finance (DeFi) and altcoins. Here are five potential implications:

1. L2 and DeFi Rally: Ethereum layer-2 solutions like Optimism and Arbitrum, along with DeFi stalwarts such as Uniswap and Aave, are likely to benefit from the ETF approval. These projects, integral to the Ethereum ecosystem, saw double-digit percentage gains during the recent market surge and will continue to thrive as Ethereum's legitimacy grows.

2. Boost for EVM-Compatible Projects: Ethereum Virtual Machine (EVM)-compatible projects like Avalanche and Polygon stand to gain more than non-compatible ecosystems such as Algorand. The regulatory clarity and hype generated by the ETF approval will make EVM compatibility increasingly crucial.

3. Mainstream DeFi Adoption: An ETH ETF could simplify and secure investing in DeFi, potentially attracting everyday users. This would be advantageous for decentralized exchanges like SushiSwap and lending protocols like Aave and Compound, which offer significant utility in the DeFi space.

4. Challenges for Ethereum Competitors: Competitors such as Solana might struggle to keep pace in a post-ETH ETF environment. Although they may still achieve all-time highs, the approval of ETH ETFs positions Ethereum as the leading blockchain in DeFi, overshadowing its rivals.

5. Innovation in zk-Rollups and RWA Tokens: Ethereum’s role in technological advancements, such as zero-knowledge proofs and real-world asset tokenization, will likely expand. Projects may migrate to Ethereum rollups, as seen with Celo’s recent transition to Ethereum using OP Stack.

However, increased opportunities in DeFi also bring risks, such as fraud and rug pulls. Investors must enhance their security measures and conduct thorough research. They should also avoid FOMO and wait for market pullbacks before making investment decisions. The market’s short-term volatility is expected but necessary for sustainable long-term growth.

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