QCP Capital Predicts Bitcoin May Drop to $55,000 Amid Geopolitical Tensions

Despite escalating geopolitical tensions in the Middle East, investor sentiment remains positive, according to QCP Capital.

“Geopolitics […] may capture attention, but the shallow sell-off following the conflict’s escalation suggests the market still favours risk assets. This minor setback should not distract from the bigger picture,” the experts noted.

Analysts warned that further deterioration in the Middle East situation could push Bitcoin below $60,000, potentially down to $55,000.

QCP Capital highlighted the People’s Bank of China’s stimulus measures aimed at supporting the economy.

“A liquidity surge and potential fiscal support will boost valuations in China, and bullish sentiment will spread globally across all risk assets, including cryptocurrencies,” they added.

Experts also noted the “dovish” tone of Federal Reserve Chair Jerome Powell‘s speech on September 30.

“We expect asset prices to remain supported as both the Fed and the People’s Bank of China have entered an aggressive rate-cutting cycle,” they stated.

Technical analyst Peter Brandt observed that the recent Bitcoin rally did not disrupt the seven-month sequence of lower highs and lower lows.

The recent rally in Bitcoin did NOT disturb the 7-month sequence of lower highs and lower lows. $BTC
Only a close above 71,000 confirmed by a new ATH will indicate that the trend from the Nov 2022 low remains in force pic.twitter.com/lFO9A20VPD

— Peter Brandt (@PeterLBrandt) October 2, 2024

“Only a close above $71,000, confirmed by a new ATH, will indicate the relevance of the [bullish] trend from the November 2022 low,” the expert emphasized.

Earlier, 10X Research predicted a swift move of digital gold prices towards $70,000.

As reported in CryptoQuant, the growth in stablecoin capitalization in August-September could extend the upward trend of Bitcoin and other major cryptocurrencies.