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Bitcoin’s Struggles May Fuel an Altcoin Rally, Says QCP Capital

QCP Capital: Altcoin Surge May Be Imminent Amid Bitcoin Volatility The cryptocurrency market could be heading for a significant shift as Bitcoin (BTC) struggles with sustained volatility, according to QCP Capital , a Singapore-based crypto trading firm. The expiration of $20 billion worth of BTC and Ether (ETH) options on December 27 could be a catalyst for market movement. Bitcoin’s Struggles Above $100,000 QCP Capital highlighted Bitcoin’s difficulty in maintaining its position above the $100,000 threshold. This struggle could lead to a rotation of capital into altcoins , replicating patterns observed during similar market phases last month. Bitcoin has been trading in a volatile range, and continued challenges could further undermine its dominance. Altcoins Positioned for a Rally The potential shift of investor focus toward altcoins could bring significant price movement in the broader cryptocurrency market. QCP Capital predicts that as BTC and ETH options reach expiry, funds might flow into smaller-cap cryptocurrencies with promising utility or strong community backing. Expert Insights: FxPro’s Alex Kuptsikevich on BTC’s Decline In addition to QCP Capital’s outlook, FxPro analyst Alex Kuptsikevich shared a more cautious view: BTC could experience additional declines, with dips to $90,000 or even $70,000 not out of the question. Kuptsikevich emphasized the importance of macroeconomic conditions and institutional sentiment in determining the crypto market’s trajectory. Key Takeaways for Investors Monitor BTC Options Expiry: The $20 billion in BTC and ETH options expiry on Dec. 27 could bring heightened market volatility, influencing asset flows and price movements. Potential Altcoin Rally: A rotation of interest into altcoins could offer opportunities for traders and investors seeking higher returns or portfolio diversification. Caution Amid Volatility: While the market shows signs of potential growth in altcoins, BTC’s unpredictability underscores the importance of risk management in trading strategies. Conclusion As Bitcoin faces challenges staying above $100,000, the cryptocurrency market is poised for significant developments. With a large options expiry on the horizon , altcoins may emerge as a major beneficiary of shifting market dynamics. Investors should watch for trends in capital rotation and prepare for potential opportunities in the altcoin market while remaining mindful of Bitcoin’s price movements. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries. CoinTurk News

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Bitcoin sees 2024’s largest weekly outflow from exchanges – What does it mean?

Bitcoin ( BTC ) retraced below the $100,000 psychological level , bringing uncertainty for some and a buying opportunity for others. As a display of the latter, exchanges registered over $2 billion in BTC outflow from their accounts in a week – the largest Bitcoin outflow this year. Finbold retrieved data from CoinGlass on December 24, looking at the exchange’s spot markets over the last seven weeks. From December 15 to today, exchanges saw a $2.12 billion outflow in BTC, which is currently trading at $95,177. This marks the largest weekly spot outflow year-to-date in dollar value, according to CoinGlass , surpassing May’s $2.03 billion. Notably, the previously largest 2024 outflow triggered a Bitcoin price crash from $58,240 down to $31,778. Historically, significant spot outflows happen during bull rallies , fueled by massive retail demand, buying and withdrawing the BTC to self-custody. However, this increased demand by retail investors could usually signal a price top for Bitcoin and other assets, requiring caution. BTC Spot Inflow/Outflow, 1 week, 2024. Source: CoinGlass / Finbold Nearly $1 billion of Bitcoin left Binance alone in a week In this context, Binance is by far the exchange with the largest individual outflow among its competitors. Nearly $1 billion in Bitcoin left the leading crypto exchange in the last seven days, followed distantly by Bitfinex. The second-largest weekly outflow was slightly above $500 million from Tether’s parent company. Interestingly, the third largest flow was a green one, with Coinbase registering $422 million in Bitcoin deposits inflow. Other exchanges like Bybit, OKX, Kraken , and Bitstamp also registered BTC outflows between $79 million and $260 million. Bitcoin BTC Spot Data Analysis, Heatmap (Net Inflow). Source: CoinGlass Usually, Bitcoin net inflows mean most investors are depositing BTC with the intention of selling. Meanwhile, net outflows would suggest the opposite, with bullish investors withdrawing what they have already bought. It is notable that, given its nature, inflows can usually precede huge price drops, as investors need to deposit before they can sell, being a proactive measurement. On the other hand, investors can only withdraw what they have already bought, so the outflows are a reactive metric and do not necessarily mean the price will increase after a large Bitcoin net outflow. As seen in the historical chart, outflows are a useful sentiment indicator that sometimes signals an upcoming reversal. Featured image from Shutterstock. The post Bitcoin sees 2024’s largest weekly outflow from exchanges – What does it mean? appeared first on Finbold . CoinTurk News