Bitcoin's Potential Retraction to $36K: A Prediction by QCP Capital

• Bitcoin Spot ETF Launch: Forecasting Demand and Market Volatility
• Predicted Market Responses to Bitcoin Spot ETF Launch
• Ether as a Potential Secondary Investment Option
• Ether: An Interesting Laggard Play
• Discussion of Rule Changes for Bitcoin ETF Listing
• Bitcoin's Performance

Bitcoin Spot ETF Launch: Forecasting Demand and Market Volatility

The upcoming launch of a bitcoin (BTC) spot exchange-traded fund (ETF) in January may initially witness a subdued demand, as forecasted by Singapore-based QCP Capital in a recent report. This could trigger a 'sell the news' situation, potentially causing short-term volatility for bitcoin and potentially shifting the market focus towards ether (ETH).

Predicted Market Responses to Bitcoin Spot ETF Launch

QCP Capital's analysis suggests that the true demand for the newly launched bitcoin spot ETF could prove underwhelming compared to market expectations. They predict a topside resistance for bitcoin within the $45k-$48.5k area and a possible decline to 36k levels before any upward trend recommences. Currently, bitcoin is trading above $43,700 during Asia's business hours, marking a 2% increase on the day.

Ether as a Potential Secondary Investment Option

The report also singles out ether as a potential alternate investment option. With the anticipated market shift from bitcoin, the speculative interest in an upcoming ether spot ETF could push ether prices up, regardless of whether the ETF has been officially launched.

Ether: An Interesting Laggard Play

Ether could potentially be an intriguing laggard play in this scenario, QCP Capital suggests. The excitement generated by such headlines could create a speculative boost for ETH price, regardless of its justification.

Discussion of Rule Changes for Bitcoin ETF Listing

It was reported that BlackRock (BLK), Nasdaq (NDAQ), and the Securities and Exchange Commission (SEC) recently conducted their second meeting within a month. The agenda included discussing rule changes for the listing of the bitcoin ETF with BlackRock modifying its proposal to incorporate cash redemissions, aligning it with SEC's preferences. Additionally, Grayscale also held a second meeting with the SEC recently.

Bitcoin's Performance

According to data, Bitcoin$42,260 -0.64% has increased by 17% in the past month, as expectations continue to mount around the ETF.

Edited by Jonathan Stoker