Crypto asset trading firm QCP Capital is optimistic about Bitcoin reaching a new all-time high post-halving, driven by a broader liquidity rotation. The firm’s latest market update reveals that Bitcoin ETF inflows peaked on March 12, with over $1 billion entering the market. However, a subsequent decline in net inflows and a significant outflow of $326.2 million—the largest to date—led to a sharp drop in Bitcoin’s price to $60,770, before it recovered to over $63,000.

Bitcoin’s daily trading volume has decreased by 8% today, suggesting a potential slowdown in liquidation. Early spot ETF tracking for GBTC shows a record outflow of -$642.5m. QCP Capital will closely monitor the aggregate ETF flow numbers, with a net negative indicating a bearish signal.

The firm speculates whether these movements signal a trend towards net daily outflows or are simply position adjustments ahead of the Federal Open Market Committee (FOMC) meeting. The Fed had previously hinted at three rate cuts this year, aligning market expectations accordingly. Fed rate cuts typically boost Bitcoin prices by reducing the appeal of yield-bearing assets, making non-yielding assets like Bitcoin more attractive to investors.

Persistent inflation and rising costs across energy, housing, and supply chains may prompt a reevaluation, potentially reducing the forecast to two cuts. QCP Capital suggests that such an outcome could negatively impact Bitcoin’s spot price. Despite these uncertainties, the firm remains positive about Bitcoin’s trajectory, citing a “broad liquidity rotation” that could drive the cryptocurrency to new highs after its next halving event.

QCP Capital recognizes the possibility of a severe short-term correction due to existing leverage but recommends traders adopt strategies like the Enhanced Sharkfin. This strategy offers principal protection and significant upside potential, helping navigate volatility. According to QCP, this approach provides an optimal balance, minimizing downside risk while maximizing profit opportunities from an upswing in Bitcoin’s value.

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