According to the latest market update from trading firm QCP Capital, crypto investors should brace themselves for macro-fueled price action involving Bitcoin (BTC) and Ether (ETH), but not due to toothless US regulators. Even if the US Securities and Exchange Commission (SEC) continues to go after crypto, it will not cause the mass price depreciation that some fear.

SEC Not a Threat

QCP Capital has maintained that BTC/ETH will continue to treat the SEC as a toothless adversary, especially as it becomes clear that the term “security” will not apply to either. The trading firm believes that as more far-fetched SEC complaints are filed, it becomes increasingly clear that all the SEC is seeking are sensational headlines leading to a final fat settlement.

Despite ongoing efforts by the SEC to regulate the crypto industry, QCP Capital believes that the regulatory body will not spark mass price depreciation. The analysis states that trigger-happy Gensler and his SEC cronies have wielded their “securities” threat on their favourite whipping industry once again.

Department of Justice a Potential Threat

QCP Capital has warned that the US Department of Justice or other arms of the establishment could put the cat among the pigeons if they get involved. In such a scenario, the case would become more serious and all bets would be off. Even though the Biden administration has continued to mudsling on crypto, QCP believes that this will continue and even ramp up during the election season next year.

Macro Data Reports and Treasury General Account Changes

Next week’s macro data reports could also provide a trigger for BTC and ETH volatility. The Consumer Price Index (CPI) print for May is due on June 13, along with a Federal Reserve policy update, which will decide the next step for benchmark interest rates. Other huge central bank meetings are also taking place, according to QCP.

The analysis also flagged changes to the Treasury General Account, which could suck liquidity out of the monetary system and present a potential headwind for risk assets across the board. Former BitMEX CEO Arthur Hayes has been monitoring this theory since the start of 2023, and other well-known crypto figures are also aware of it.

Crypto Market Sentiment

The days following the exchange lawsuits have so far seen crypto market sentiment withstand the pressure, with the Crypto Fear & Greed Index staying rooted at 50/100, which is considered neutral territory. BTC/USD continues to tread water near key price support levels, particularly the 200-week EMA. At the time of writing, BTC/USD traded at around $26,600 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.

QCP Capital’s analysis suggests that BTC and ETH volatility will not be caused by toothless US regulators. Instead, macro-fueled price action and other potential factors, such as the US Department of Justice or changes to the Treasury General Account, could present potential headwinds for risk assets across the board.

Analysis

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