Crypto asset trading firm QCP Capital predicts Bitcoin to reach a new all-time high post-halving, driven by the wider liquidity rotation.  

According to the firm’s latest market update, Bitcoin ETF inflows hit a peak on March 12, with over $1 billion entering the market. However, a subsequent decline in net inflows and a significant outflow of $326.2 million—the largest to date—led to a sharp drop in Bitcoin’s price to $60,770, before it recovered to over $63,000. Bitcoin’s daily trading volume has declined by 8% today, indicating a potential slowdown in liquidation. 

The firm speculates whether these movements indicate a trend towards net daily outflows or merely position adjustments ahead of the Federal Open Market Committee (FOMC) meeting. The Fed had previously hinted at three rate cuts this year, with the market aligning expectations accordingly. Fed rate cuts typically boost Bitcoin prices by reducing the appeal of yield-bearing assets, making non-yielding assets like Bitcoin more attractive to investors.

Persistent inflation and rising costs across energy, housing, and supply chains may prompt a reevaluation, potentially reducing the forecast to two cuts. According to QCP Capital, such an outcome could negatively impact Bitcoin’s spot price. 

Despite these uncertainties, the firm remains optimistic about Bitcoin’s trajectory, citing a “broad liquidity rotation” that could propel the cryptocurrency to new highs after its next halving event. They acknowledge the possibility of a severe short-term correction due to existing leverage. However, they recommend traders to adop strategies like the Enhanced Sharkfin, offering principal protection and significant upside potential, to navigate the volatility. According to QCP, this approach provides an optimal balance, minimizing downside risk while maximizing the chances of profiting from an upswing in Bitcoin’s value.