Leading cryptocurrency Bitcoin (BTC) fell for the third consecutive day on Friday, falling to $112,000 after a high of $123,000.
Bitcoin and altcoins suffered a sharp decline as weak employment data from the US and new tariffs rattled the markets.
This sudden drop left long-position investors in the lurch and led to $1 billion in liquidations.
As the market began to recover after this decline, Singapore-based analysis firm QCP Capital published its new report.
“The sharp decline in the market occurred as a result of the risk aversion trend in traditional markets.
This trend was triggered by a confluence of factors: a weaker-than-expected U.S. jobs report and a new wave of tariffs from Washington.
The result was a broad decline in stocks and cryptocurrencies as investors readjusted their expectations for global growth and liquidity.
QCP analysts noted that those anticipating an altcoin season took a major hit, saying Solana (SOL) and Ethereum (ETH) lost approximately 20% and 10% of their value, respectively.
Analysts stated that despite this decline, the bullish structure in the market remained intact and that option flows also supported this.
Analysts stated that the declines experienced after the ATH were of a corrective nature rather than a surrender, adding that historically, these declines, especially those of excessive leverage cleansing, laid the groundwork for subsequent increases.
QCP recently noted that dips could be bought if spot ETF inflows resume and implied volatility declines.
