Following the sharp volatility in crypto markets over the weekend, QCP Capital explained that macroeconomic pressures were behind Bitcoin’s decline from $91,000 to $85,000.
The Bank of Japan’s (BOJ) more hawkish tone than expected dampened risk appetite, while weaker PMI data from China fueled market concerns, the QCP said. Analysts emphasized that these two factors led investors to aversion to risk during the Asian session.
Another factor that triggered the market decline was signals that the Strategy fund might sell BTC if its mNAV level deteriorated. QCP states that this possibility negatively impacted investor psychology and increased selling pressure.
All these developments occurred during a period of strengthening positive expectations in the overall macroeconomic climate. The end of the US balance sheet tightening (QT), increasing interest rate cut prospects, and renewed positive flows into spot ETFs were among the key supporting factors for Bitcoin.
Analysts say the most critical question now is whether Bitcoin can maintain the lows it has tested in recent days. BTC’s price action around $86,000 suggests that the markets are still searching for short-term direction.
*This is not investment advice.