Key Points
- U.S. jobless claims report and CPI release could trigger new Bitcoin all-time highs, says QCP Capital.
- Ethereum expected to outperform Bitcoin once spot Ethereum ETFs start trading.
QCP Capital analysts believe that the upcoming U.S. jobless claims report and the Consumer Price Index (CPI) release might set the stage for Bitcoin to reach new all-time highs.
Market Expectations and Bitcoin
The analysts also highlighted significant Bitcoin ETF inflows of $488.1 million on Wednesday and call buying.
They suggested that potential rate cuts could further fuel the rally.
The Bank of Canada was the first major central bank to cut interest rates this year, reducing them by a quarter-point to 4.75%.
It is anticipated that the European Central Bank will also lower its rates to 4.25%.
Ethereum’s Prospects
Ethereum briefly outperformed Bitcoin after the U.S. Securities and Exchange Commission approved 19b-4 forms for eight spot Ethereum ETFs from firms like BlackRock and Fidelity. However, these issuers still need their S-1 registration statements to go effective before trading begins.
QCP Capital anticipates Ethereum to continue underperforming in the short term due to SEC Chair Gary Gensler’s comments that the spot Ethereum ETF S-1 approvals “will take some time.”
Yet, they expect Ethereum to eventually surpass Bitcoin once the ETFs start trading.
Ahead of the U.S. jobless claims report and Friday’s NFP release, the cryptocurrency market is relatively quiet.
Bitcoin is trading mostly flat at $71,065 and Ethereum at $3,850, with the global crypto market cap standing at $2.78 trillion, a 0.6% increase in the last 24 hours.
This week’s jobless claims and NFP data could provide insights into the labor market’s condition, potentially indicating when the U.S. Federal Reserve might adopt a looser monetary policy.
This could also stimulate global stock markets and risk assets such as Bitcoin.
Friday’s NFP data is likely to be the next major data point in determining the likelihood of an end to higher-for-longer rates.
