The cryptocurrency market experienced a volatile week, with Bitcoin (BTC) retesting the July high of $69,500 before retracing to find support around $65,000, according to analysis from QCP Capital. The firm suggests a consolidation pattern is forming.
Despite the price fluctuations, institutional demand for Bitcoin remains strong. BTC ETF net inflows reached $997.7 million this week, marking the third consecutive week of positive flows. This sustained institutional interest underscores Bitcoin’s growing acceptance within traditional finance.
Bitcoin’s dominance continues to climb, reaching 59.75% this week, while Ethereum (ETH) struggles against its counterpart. The ETH/BTC pair broke key support at 0.03850, sliding 5.85% to a new low of 0.03625. QCP Capital predicts this trend of Bitcoin dominance will likely persist as BTC approaches its all-time high.
Adding to the market turbulence, reports of a US government investigation into Tether (USDT) sent the stablecoin’s price tumbling to 0.9965 before recovering to above 0.9980. Tether CEO Paolo Ardoino has denied the allegations, but the situation warrants close monitoring, given Tether’s history of regulatory scrutiny.
Geopolitical tensions further complicated the market landscape. Escalating conflict in the Middle East, with Israel launching retaliatory strikes against Iran, contributed to selling pressure in both traditional and crypto markets. The Dow Jones Industrial Average and S&P 500 fell 0.61% and 0.03% respectively, while Bitcoin briefly dipped to $65,500.
Looking ahead, market participants are focused on the upcoming non-farm payroll data next Friday, which will offer crucial insights into the Federal Reserve’s next move. Current market odds favor a 25 basis point rate cut in November, with a probability of 95.1%.
