QCP Capital sees declines as a buying opportunity for Bitcoin and Ethereum

Bitcoin and Ethereum lost momentum last Friday after US jobs data came in stronger than expected. That evaporated hopes for an interest rate cut by the US central bank (Federal Reserve) in September. However, according to QCP Capital analysts, the price drops represent an opportunity to buy both Bitcoin and Ethereum at cheaper prices.

Buying opportunity for Bitcoin and Ethereum?

If we can believe the figures, and not all analysts are convinced of this, the American economy added 272,000 jobs in May. That is a lot more than the 185,000 that were expected.

Furthermore, this number is much higher than the April score, which was adjusted downwards and amounts to 165,000 jobs. Although unemployment reached 4% for the first time in 27 months, wage growth was also a concern for the market.

Wages grew by 0.4% month on month, which may put upward pressure on inflation. There was an immediate response from the market. The probability of a Fed rate cut in September fell from 85% to 60%.

Bitcoin appeared to be attempting to break past $72,000 before the figures were released, but fell 3% after the news. Ethereum also fell hard.

‘Federal Reserve must lower interest rates’

The analysts at QCP Capital are not that concerned about the Federal Reserve’s interest rate policy. They believe it is only a matter of time before the US central bank has to lower interest rates, because other Western central banks have already started to do so.

QCP Capital is currently bullish on Bitcoin and sees the current prices as a buying opportunity, because they believe the market is too pessimistic about the interest rate policy for the coming months.

They actually expect that the chance of a positive surprise (faster interest rate cuts) is greater than the chance of even stricter policy. “It will be difficult for America to ignore the rest of the world,” QCP Capital said of the Fed’s interest rate policy.

Last week the European Central Bank (ECB) and the Bank of Canada lowered their interest rates.

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