Bitcoin Plunges 3,000 Points, Recovers to $98K: QCP Predicts Stability Ahead

Bitcoin Plunges 3,000 Points, Recovers to $98K: QCP Predicts Stability Ahead

The cryptocurrency market faced a sharp correction as Bitcoin (BTC) dropped 3,000 points to find support at the $95,000 level, resulting in $1.5 billion in long liquidations. BTC has since stabilized, trading within the $97,000–$98,000 range, with analysts at QCP Capital forecasting a period of relative stability ahead.

Institutional Demand and Spot ETF Momentum Drive Optimism

Despite the turbulence, institutional interest in Bitcoin remains robust. Spot Bitcoin and Ethereum ETFs have reported consecutive days of net positive inflows—eight and 11 days, respectively. According to QCP Capital, this sustained demand highlights growing investor confidence and contributes to a more stable trading environment.

Additionally, Riot Platforms has adopted an investment approach reminiscent of MicroStrategy’s, issuing $500 million in convertible notes to fund further Bitcoin acquisitions. The notes, issued with a 0% coupon, have reportedly been met with strong demand, reinforcing optimism about institutional adoption.

QCP Capital questions whether the market can afford to overlook these signs of significant interest, which may serve as a catalyst for future market movements.

Microsoft Shareholders and Broader Market Conditions

Adding to the potential bullish sentiment, Microsoft shareholders are preparing to vote on a proposal to allocate Bitcoin to the company’s balance sheet. If approved, this decision could provide a substantial boost to market confidence, though it faces opposition from the company’s board.

In the macroeconomic landscape, relative political stability in France and South Korea, combined with China's stimulus promises, has provided support to Asian markets. However, QCP notes that BTC and ETH derivatives markets remain cautious, with a noticeable skew toward puts, indicating lingering investor uncertainty.

Range-Bound Outlook Without a Major Catalyst

While Bitcoin shows signs of stabilization, QCP emphasizes the need for a significant catalyst to break the psychological $100,000 threshold. Without such a trigger, the market is expected to remain range-bound in the short term.