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Bitcoin (BTC) has broken out of its recent trading range, dropping below $90,000 for the first time in a month, according to a market update from QCP Capital.
Bitcoin Drops Below $90K Amid Market Uncertainty, QCP Warns of Cautious Outlook
The flagship cryptocurrency is currently trading just below this level, with market sentiment remaining subdued by broader macroeconomic factors.
Trump Tariffs and Corporate Demand Concerns
QCP Capital attributes some of Bitcoin’s recent weakness to US President Donald Trump’s new trade policies:
- Customs duties to Canada and Mexico
- Restrictions on Chinese investments in the US
These measures have increased economic uncertainty, leading to cautious trading in risky assets, including cryptocurrencies.
Additionally, QCP notes that recent Bitcoin demand has largely been driven by institutions, particularly firms like Strategy, which finance their BTC purchases through equity-linked bond issuances.
However, the firm warns that this funding source may be approaching saturation, potentially limiting further institutional demand.
Cautious Outlook for BTC
With BTC struggling to maintain key support levels and institutional buying momentum likely slowing, QCP remains cautious about Bitcoin’s short-term outlook.
The next few days could be critical in determining whether Bitcoin breaks above $90,000 or continues its downward trend.
*This is not investment advice.
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