QCP: Crypto Market Weakness Likely Short-Term Amid Geopolitical Tensions

Geopolitical instability in the Middle East has cast a shadow over Bitcoin and the wider cryptocurrency market, but analysts predict this downturn will be temporary.

On October 1, a ballistic missile attack from Iran targeting Israel triggered a significant selloff across the crypto market. Bitcoin, Ethereum, and other major altcoins suffered, with the total market dropping by approximately 4%.

Bitcoin fell below $60,500 as the market continued to feel the effects of the geopolitical tension. Analysts from QCP Capital forecasted further declines in Bitcoin’s price before any recovery. Their technical analysis indicated that the short-term outlook for Bitcoin was bearish.

Ethereum also dipped, trading below $2,400, while Solana dropped over 7%, falling beneath $137, according to data from crypto.news. Despite October’s reputation as a favorable month for crypto, markets have experienced consecutive red days. However, QCP remains optimistic, suggesting that the current downturn is only a short-term trend.

In an October 3 report, QCP highlighted that expected interest rate cuts and strong U.S. labor market data should boost Bitcoin and altcoins in the near future.

Bitget Chief Analyst Sees a Bullish Q4 for Crypto

Ryan Lee, Chief Analyst at Bitget Research, echoed the optimism for a bullish fourth quarter for Bitcoin. In a statement shared with crypto.news, Lee pointed to a 16% drop in trading volume, which he attributed to investors watching geopolitical and macroeconomic developments closely.

Lee also noted CryptoQuant data showing steady institutional interest in Bitcoin, reinforcing his belief that the current weakness in the crypto market will soon give way to a stronger rebound.