Bitcoin's Ascent May Hit a Wall Around Mid-$90K: Trading Firm

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Bitcoin (BTC) has topped $90,000 as soaring odds for a December Fed rate cut boosts risk sentiment.

The broader macro backdrop, though, is far from clean as inflation remains elevated and the rally may face resistance beyond mid-$90,000, according to a Singapore-based trading firm.

"We see supply capping moves toward the mid-90ks, while $80K–$82k remains the key support zone," QCP Capital's market insights team said in a market note Thursday.

The team explained that bitcoin ETFs listed in the U.S. are yet to see strong inflows and bitcoin holder Strategy's stock is only just nearing break-even and has landed on MSCI’s delisting watchlist.

Meanwhile, away from crypto, AI credit is starting to look wobbly, with widening credit default swap (CDS) spreads and unease over Nvidia’s rising receivables and inventories putting a dent in the sector’s halo, the firm noted.

AI has been the single biggest driver of bullish momentum across risk assets, including Bitcoin , since the debut of ChatGPT in late 2022.

QCP’s view aligns with other analysts who note that bitcoin’s corrective bounce from nearly $80,000 to above $91,000 is built on shrinking liquidity.