Cryptocurrency analysis firm QCP Capital has released its weekly analysis, predicting a continuation of the recent crypto rally driven by strong ETF inflows and a weakening Japanese yen.
Bitcoin (BTC) surged 10.48% to a high of 69,000 this week, bringing the 70,000 psychological level within reach. With limited macro headwinds in the coming week, QCP Capital believes the rally could continue.
The firm highlighted the substantial inflows into Bitcoin ETFs, totaling $203.3 million over the past six trading days. This consistent institutional demand, combined with the recent SEC approval for BTC ETF options, is expected to provide the ETF with the necessary liquidity to attract sustainable inflows.
Bitcoin’s dominance has reached a multi-year high of 58%, approaching key resistance at 60%. QCP Capital anticipates that this level will set the stage for a strong recovery in Layer 1 (L1) coins.
In Japan, inflation remains weak at 2.5%, down from 3.0%. The Bank of Japan is unlikely to raise interest rates soon, contributing to a rally in USD/JPY, which is currently below 150.
With US equities near all-time highs and the Japanese yen weakening, risk-on sentiment is expected to grow stronger as the US election approaches. This will likely propel risk assets higher and support QCP Capital’s “Uptober” narrative.
