QCP Capital Predicts Continued Market Correction in September

Analysts at QCP Capital have highlighted Ethereum’s significant underperformance compared to Bitcoin in August and warned that the market downturn may persist into September. This was reported by The Block. 

“Bitcoin ended August with an 8.6% decline. We began the month with the ‘Bank of Japan crash,’ and digital gold failed to rise above $65,000. Ethereum’s results were significantly worse—a 22% drop amid alleged sales by Jump Trading,” the experts noted. 

QCP Capital also pointed to the unsatisfactory performance of spot ETFs in the United States. Bitcoin-based instruments showed relatively weak results, while Ethereum-based products recorded outflows on most days following their launch. 

The analysts added that the bearish trend for major cryptocurrencies might continue in September:

“Historically, September seasonality is bearish: six of the last seven periods have shown negativity, with an average return of -4.5%, which would bring us to around $55,000 [for Bitcoin] if we see the same this month.” 

According to the researchers, the level around $54,000 serves as support, as the asset bounced off it in July before rising. 

“We expect the volatility curve to steepen further as front-end metrics decline in a sideways market. Meanwhile, more long calls are appearing for a later date until March for both Bitcoin and Ethereum,” QCP Capital emphasized.

At the time of writing, the leading cryptocurrency is trading at $58,500 (-7.9% for the week), while Ethereum is at $2,500 (-7.1%).

Earlier, Real Vision analyst Jamie Coutts predicted a “mad season” for digital gold with a target of $150,000.

In previous reports, BiTBO noted a decline in Bitcoin miners’ revenue to an 11-month low.