"It's really tiring to see the price of BTC, it goes up and then goes down and comes back to the same place."
After breaching $28,500, the price of the mother of all cryptocurrencies Bitcoin (BTC) appears to have plunged back below the $27,500 zone as the yield on the 10-year United States (US) government bond climbed to a 16-year high.
In addition, the much-hyped Ethereum (ETH) futures exchange-traded fund (ETF) has failed to attract investors following a first-day decline in trading volume.
According to Michael Safai, Managing Partner of Dexterity Capital said that investors should not worry if crypto prices do not react in a big way even though ETFs have been launched following which digital assets should do.
Not only that, the entire crypto market will also be in a state of uncertainty if interest rates continue to rise high as a result of the US 10-year Treasury yield rising to 4.70%.
There is no denying that the crypto market including BTC has seen recent price increases influenced by factors such as US government decisions, but QCP Capital fears that the digital asset will face another decline due to changes in demand.
However, QCP will be buying a hedge* at the bottom, where it expects BTC's resistance zone may hold around $29,000 to $30,000.
*The act of buying or selling securities as a way to protect someone if other active positions end up losing due to price fluctuations
As of this writing, BTC price has plunged by 1.38% to $27,467 in the last 24 hours with a market cap of $535 billion but is still up 4.60% over the past week.
While ETH slipped around 3.33% at the level of $1,664 in the last 24 hours with a market capital of $200 billion, then Ripple (XRP) fell 1.87% at $0.51 and gained 1.86% in the last seven days.
