Cryptoupdated 44m ago2 min read
QCP Capital Warns Equity Deleveraging Could Threaten Bitcoin’s $80,000 Support
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Equity deleveraging could transmit to crypto markets and threaten the $80,000 support. Nasdaq 100 futures and S&P 500 futures slipped, signaling broader equity weakness.
5 outlets told this the same way.
ETF inflows meet equity risk
Bitcoin held above the $80,000 support level after spot U.S. bitcoin ETFs posted their biggest net inflows in a month, with BlackRock’s IBIT recording its largest inflows in over a year.
“The funds posted their biggest net inflows in a month and BlackRock’s IBIT recorded its largest inflows in over a year.”
The ETFs attracted roughly $527 million in net flows, while BlackRock took in $665 million and Fidelity and Grayscale recorded withdrawals.
QCP Capital warned that broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained.
CoinDesk tied the macro backdrop to risk, noting the U.S. 10-year Treasury yield is around 5.13% and Brent crude is trading near $110 a barrel.
The Federal Reserve is widely expected to hold interest rates steady next week, while a 25 basis-point increase is being priced in for next month on prediction markets.
Bitcoin rejected as yields rise
Bitcoin traded below $82,000 after Monday’s Wall Street open as crypto diverged from rising stocks and bond yields. Data from TradingView showed $BTC/USD dipping to $81,678 on Bitstamp after reaching $83,062 earlier in the day. The US 10-year and 30-year yields reached 5.13% and 5.46%, respectively, and US bond yields rose in lockstep with equities ahead of anticipated strong corporate earnings.
QCP Capital’s view said broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained. 24-hour cross-crypto liquidations totaled $335 million as ask liquidity thickened above $83,000 on exchange order books.
China data lifts risk assets
Risk assets across cryptocurrency markets, Asian equities and US index futures advanced on Monday as China’s latest economic figures came in stronger than anticipated and oil prices eased. Bitcoin traded near $82,500, gaining 0.7 percent since midnight UTC and standing 1.3 percent higher over the preceding 24 hours. The move was attributed to data released by China’s National Bureau of Statistics, saying gross domestic product expanded 4.5 percent year-on-year in the third quarter.
“Bitcoin, the leading cryptocurrency by market capitalization, traded near $82,500.”
Retail sales rose 1.1 percent in September and industrial production above a designated size accelerated to 5.5 percent year-on-year in September. The Federal Reserve was widely anticipated to leave rates unchanged in the 4.75–5 percent range at its upcoming meeting after a recent 25-basis-point increase.