Singapore-based cryptocurrency investment firm, QCP Capital has released its market outlook for the fourth quarter of 2023, forecasting continued uncertainty and volatility for Bitcoin and equities markets.
In their report, QCP Capital highlights that Bitcoin’s price is currently being driven by speculation around whether the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF this year. However, the price surged based on hoax about Blackrock’s BTC spot ETF approval.
However, QCP Capital believes SEC approval of a spot Bitcoin ETF is unlikely to happen this year.
This removes a potential catalyst for Bitcoin’s price, leaving it more exposed to prevailing macroeconomic conditions.
QCP Capital also expresses a bearish view on equities markets for Q4 2023. They cited the current consensus optimism about a year-end rally in equities as a contrarian indicator that the opposite may occur.
The combination of rising real interest rates in the United States and simmering geopolitical tensions worldwide, including the conflicts in Ukraine and Palestine, has created a volatile mix that could negatively impact investment markets.
The report warns that these factors could lead to a significant downturn across equities and bonds, potentially sparking a “major risk-parity catastrophe.” QCP Capital recommends that investors prepare for high volatility in Q4, whether from macroeconomic headwinds or geopolitical events.
Additionally, the report directs the attention of long-term traders towards Tesla’s upcoming earnings announcement. In particular, they suggest watching for details on whether Tesla has divested its remaining 25 percent of its Bitcoin holdings.
Such a move by Tesla could, however, have a ripple effect across the crypto market.
QCP Capital also advises investors to prepare for a turbulent Q4. This prediction stands out among more optimistic forecasts from other experts.
BlackRock CEO Larry Fink recently commented that BTC is on a “flight to quality,” and crypto analyst Jason Pizzino’s prediction of a potential Bitcoin rally towards a new all-time high in 2023–2024 to 2024 paints a divergent picture.