Following the sharp swings in the crypto market over the weekend, QCP Capital explained that macroeconomic pressures were behind Bitcoin’s fall from $91,000 to $85,000.
QCP said the Bank of Japan’s more hawkish tone than expected lowered risk appetite, while weaker China PMI data heightened market concerns. Analysts highlighted that these two factors led to investors becoming risk-averse during the Asian session.
Another factor that caused the market decline was a signal that strategy funds may sell BTC if mNAV levels worsen. QCP said this possibility had a negative impact on investor sentiment and increased selling pressure.
All these developments occurred at a time when positive expectations were growing in the overall macroeconomic climate. The end of US balance sheet tightening (QT), rising prospects for interest rate cuts, and new positive inflows into spot ETFs were key supporting factors for Bitcoin.
Analysts say the most important question now is whether Bitcoin can sustain the lows it has tested in recent days. BTC’s price action around $86,000 suggests that the market is still searching for short-term direction.
*This is not investment advice.
