Following Donald Trump’s presidential victory, Bitcoin and altcoins experienced significant price increases but also sharp declines. As the end of 2024 approaches, investors are becoming more cautious about the possibility of a new year rally. Analysts at Singapore-based QCP Capital have listed their predictions for Bitcoin and altcoins, citing a significant upcoming option expiration in Bitcoin as a key factor affecting market dynamics.
QCP Capital analysts have pointed out that the impending option expiration in Bitcoin could lead to price fluctuations, which in turn may have a positive impact on altcoins. With approximately $20 billion set to expire this week, representing almost half of the total OI on Deribit, all eyes will be on Bitcoin and Ethereum options. The analysts believe that Bitcoin’s struggles to maintain its price above $100,000 could pave the way for a potential rally in altcoins.
Despite the potential for an altcoin rally, FxPro analyst Alex Kuptsikevich has warned traders that Bitcoin’s declines may continue in the near future. Kuptsikevich suggested that Bitcoin could see further drops to $90,000 or even $70,000 in a potential shock scenario. However, he also noted that a pullback to $90,000 could present an attractive buying opportunity for investors, especially as markets continue to react to the Federal Reserve’s recent tough stance on monetary policy.
It is essential for investors to remain vigilant and to thoroughly assess the risks involved in cryptocurrency trading, as the market remains highly volatile with potential for significant price swings. Despite the uncertainties surrounding Bitcoin and altcoins, analysts remain optimistic about the potential for a rally in altcoins if Bitcoin continues to struggle to maintain its price above $100,000.
In conclusion, QCP Capital analysts have highlighted the importance of the upcoming option expiration in Bitcoin and its potential impact on market dynamics. While Bitcoin may face further declines in the near future, a pullback to $90,000 could provide an attractive buying opportunity for investors. As the cryptocurrency market continues to adjust to changing conditions, it will be crucial for investors to stay informed and make well-informed decisions based on thorough analysis and risk assessment.
