Bitcoin, crypto prices throttled by macro headwinds: QCP

Crypto prices fell this week as Fed minutes revealed a hawkish tone amid rising inflation concerns.

Bitcoin (BTC) and the broader cryptocurrency market tumbled on January 9, marking a multi-day setback as the total digital asset sector fell 4% in 24 hours to $3.37 trillion.

Macro volatility is putting pressure on crypto prices, a QCP Capital researcher wrote on Telegram, minutes after the Federal Reserve meeting shared late on Wednesday, January 8. Fed governor Christopher J. Waller said the central bank will cut further interest rates to reduce rising inflation. risks.

The Fed stated that it would slow down the pace of interest rate cuts due to increased inflation risks. Yesterday’s ADP employment survey also added to macro uncertainty, showing a slowdown in both private sector hiring and wage growth. That’s a stark contrast to Tuesday’s JOLTS job openings, which painted a stronger labor market.

QCP Capital is on the decline in crypto

After rising to $95,200, Bitcoin crashed below the key support level of $92,500. QCP stated that BTC could consolidate between $92,000 and $95,000 until the next rally. The trading desk said that if $92,000 is exceeded, it may also visit the $90,000 level.

24-hour BTC price chart – January 9 | Source: crypto.news

Bitcoin may also face selling pressure from the US government, as the Department of Justice has reportedly approved the sale of $6.5 billion worth of seized Silk Road BTC. The Justice Department’s decision comes shortly before President Donald Trump’s inauguration. Some crypto advocates speculated about the timing of the DOJ’s announcement due to Trump’s promise to halt all government BTC sales and create a national reserve.

But the impact of such a selloff could be short-term due to demand from institutional giants like MicroStrategy and spot BTC exchange-traded funds on Wall Street. Trillion-dollar wealth manager Fidelity also expects more countries, companies and governments to buy Bitcoin in 2025, which could boost market prices.