Cryptocurrency market experienced a sudden decline yesterday, causing concern among investors and analysts alike. What led to this unexpected drop, and what can we anticipate in the future? Let’s explore the insights provided by analysis company QCP Capital.
In a recent market assessment, QCP Capital shed light on the events that transpired during the night. The session commenced with a positive surprise in the Non-Farm Payroll (NFP) data, showing a significant increase in employment at 272k, surpassing the expected 182k. However, this uptick was accompanied by a rise in the unemployment rate from 3.9% to 4.0%.
The conflicting data from the NFP report sparked a sense of risk aversion among investors, especially with the looming US inflation figures and the upcoming Federal Open Market Committee (FOMC) meeting next Wednesday.
Furthermore, the market witnessed a live broadcast by RoaringKitty, attracting a massive audience of nearly a million viewers. The broadcast coincided with a sharp decline in GameStop (GME) stock price, leading to a domino effect on altcoins and memecoins, resulting in a collective loss of over $40 billion in the crypto market.
Despite the turmoil, QCP Capital analysts suggest that the market may have reached a bottom in the current scenario, as investors start pricing in the possibility of interest rate cuts from the Federal Reserve in the future.
As always, it is crucial to exercise caution and conduct thorough research before making any investment decisions. For those interested in trading over 300 cryptocurrencies, registering with Binance exchange through this link offers a 20% commission discount. Stay updated with the latest news, analytics, and on-chain data by following our Telegram and Twitter accounts.
