QCP Says Crypto to Stay Range-Bound for Now as Strategy Buying Helps Bitcoin
Summary
- QCP Capital said the crypto market is set to remain range-bound for the time being.
- QCP said Bitcoin’s recovery above $65,000 was driven by additional buying from Strategy, higher cash holdings, and easing liquidity concerns.
- The report said the environment for risk-asset investing remains mixed, citing a decline in the Nasdaq index, pressure on large-cap technology stocks, a weaker dollar, and the possibility of foreign-exchange intervention by the Bank of Japan (BOJ).
Forecast Trend Report by Period
The crypto market is set to remain range-bound for the time being, QCP Capital said in a market analysis.
Odaily reported on June 23 that QCP attributed Bitcoin’s recent rebound above $65,000 to additional purchases by Strategy. The company bought 520 more Bitcoin a day earlier, while its cash holdings increased by $300 million to $1.4 billion.
Liquidity concerns have eased as the period Strategy can use to secure funds for dividend payments has extended to about 10 months, QCP said. It added that STRC, Strategy’s preferred stock product, has moved back above $90.
Even so, the backdrop for risk assets remains mixed. The report said the Nasdaq index fell about 1%, large-cap technology stocks were under pressure, and the weaker dollar revived speculation that the Bank of Japan could intervene in the foreign-exchange market.
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