Analysts: Bitcoin price unlikely to break through until the fourth quarter

As the cryptocurrency market stabilizes after a turbulent timeA new analysis warns against expecting a significant increase in the price of Bitcoin before the last quarter of the year.

Singapore-based digital asset firm QCP Capital said that the market may remain in a holding pattern for the foreseeable future, even though there are some encouraging signs.

Bitcoin’s overnight recovery to the $60,000 mark suggests that BTC managed to stabilize after last week’s sell-off. It rose even higher when BitGo moved $2 billion Mt. Gox BTC on Monday evening, This suggests that the market may be starting to ignore the potential impact of these transactions on supply.

Ethereum (ETH) also saw positive developments. Spot ETFs recorded a two-day winning streak, attracting $24.3 million. Net inflows on Tuesday.

This comes as market expectations shift toward a 50 basis point interest rate cut by the US Federal Reserve in September, boosted by a weaker US Producer Price Index (PPI).

However, QCP Capital points out that while the current environment appears favorable, it lacks the key catalysts necessary for a breakout.

“With consistent ETF inflows and BlackRock buying over the past week, crypto appears relatively well supported,” the firm noted. “However, with no major catalysts in sight, we expect limited major breakouts through Q4.”

In a separate report, 10x Research highlighted the importance of stablecoin inflows in sustaining a significant rally, citing Tether’s recent $1 billion worth of USDT issuance – albeit mostly for inventory building – as well as a $2.8 billion issuance by Tether and Circle last week.

This suggests that institutional capital is gradually flowing back into the market. However, there are already signs that this momentum is waning.

10x Research has also highlighted that more support is needed for Bitcoin to rise significantly above the $60,000-$61,000 resistance zone.

“For the breakout to be sustainable, a strong inflow of stablecoins is essential,” they noted, pointing out that other factors such as the expansion of leverage in futures and derivatives that had driven the recovery earlier this year are now less influential.

Edited by Ryan Ozawa.