Bitcoin (BTC) and Ether (ETH) are due for volatility, but not thanks to “toothless” US regulators, according to a new analysis.
in his last market update On June 9, trading firm QCP Capital told market participants to prepare for macro-fueled price action for BTC and ETH.
Related: Why is the price of Bitcoin stagnant?
QCP Capital: US Crypto “Insults” Will Continue
The dust continues to settle on this week’s top macro stories: lawsuits against exchanges Binance and Coinbase from the US Securities and Exchange Commission (SEC).
QCP believes more disruptions to come as the macro environment from next week becomes much more unpredictable.
However, the SEC and Chairman Gary Gensler, even if they continue to go after cryptocurrencies, will not cause the massive price depreciation that some fear.
“Once again, the trigger-happy Gensler and his SEC cronies brought their ‘securities’ threat to bear on their pet industry of flogging. However, as we have argued before, BTC/ETH will continue to treat the SEC like a toothless adversary, especially when it becomes abundantly clear that the term ‘security’ will not apply to either,” he wrote.
“As more and more outlandish SEC complaints are filed, it becomes increasingly clear that all they are looking for are sensational headlines that lead to a final big deal. After all, Gensler has proven to be the most capitalist of all previous regulators.”
What could put the cat among the doves, QCP warns, is the US Department of Justice or other branches of the establishment.
“And if one of them gets involved, then the case becomes more serious and all bets are off,” he continued.
“However, we expect more smears from the Biden administration to continue cryptocurrency, and even ramp up election season next year.”
The days since the exchange demands have so far seen crypto market sentiment hold up under pressure, with the Crypto Fear and Greed Index stay rooted in 50/100 — “neutral” territory.
Bitcoin price consolidates in an “action-packed” week
Meanwhile, beyond the SEC itself, next week’s macro data reports could provide a trigger of their own.
Related: Bitcoin Price May Rise 60% If ‘Textbook’ Chart Pattern Confirms — Trader
The May Consumer Price Index (CPI) release is due June 13, along with a policy update from the Federal Reserve, which will decide the next step for benchmark interest rates.
“Going into next week, we also have an action-packed macro week ahead, with US CPI, June FOMC (including Fed quarterly rate projections) and other important central bank meetings taking place. out,” QCP said.
The analysis also pointed to changes in the General Treasury Account, apt to absorb liquidity from the monetary system and, in doing so, present a potential drag on risk assets across the board.
That theory is on the radar of other well-known crypto figures, including former BitMEX CEO Arthur Hayes, who has been monitoring it since early 2023.
QCP’s bullish outlook comes as the BTC/USD pair continues to hold near key price support levels, particularly with the 200-week EMA.
BTC/USD was trading around $26,600 on Bitstamp at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
