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Crypto analytics firm QCP Capital noted that the suspension of official economic data due to the government shutdown in the US has plunged markets into a fog of uncertainty, but fundamental indicators remain unchanged.
QCP: Bitcoin Could Be a Buying Opportunity as the Dollar Loses Strength
According to the report, the US economy is on a softening but resilient course, with core inflation hovering around 3% and the possibility of a gradual easing of the Fed’s policy stance emerging.
According to QCP, the recent market pullback was not driven by policy, but by position adjustments. Rising long-term bond yields and a brief strengthening of the dollar triggered profit-taking in tech and AI stocks.
However, the price of gold surpassed the $4,000 per ounce threshold, signaling a new safe-haven move. The firm assessed that “the Fed’s more flexible and low-interest rate policy could create a ‘Goldilocks’ scenario for gold and Bitcoin.”
In Asia, the Nikkei index rose following the Japanese election results, while a weakening yen and expansionary fiscal policies boosted regional risk appetite. QCP noted that this could also provide liquidity support to crypto markets during Asian trading hours.
The report’s overall assessment is that “when dollar strength weakens, Bitcoin declines should be viewed as buying opportunities.” The firm emphasized that while data shortages and geopolitical risks could create volatility in the short term, the long-term trend favors risk assets.
*This is not investment advice.
