The report by QCP Capital titled ‘Asia Colour’ describes the current state of the cryptocurrency market, emphasizing the stagnation of Bitcoin and Ethereum as well as potential risks.
Stagnation of Bitcoin and Ethereum
According to QCP Capital, Bitcoin is unable to sustainably surpass the $120,000 mark, while steady buys at the $116,000 level limit downturns. Ethereum approaches the $4,000 mark, but neutral momentum indicators dampen its upward momentum.
Potential for Medium-Term Growth
Strong institutional interest, positive developments in ETF applications, and supportive legislation from the US Congress lay the groundwork for market optimism in the medium term. However, price movements that remain unresponsive to bullish headlines may indicate an end-of-cycle warning.
Threat of Market Decline from the Dollar
Despite the prevailing 'weak dollar' expectations throughout 2025, the Dollar Index (DXY) has dropped 10% since the beginning of the year. QCP Capital analysts note that an unexpected recovery of the dollar could trigger a wave of sell-offs across stocks and cryptocurrencies.
Thus, the current state of the cryptocurrency market as presented in the QCP Capital report indicates risks associated with the potential market reaction to changes in economic policy and regulation.
