QCP Capital: Excessive leverage has caused the market to be overbought, and a correction is inevitable

According to the latest analysis report by QCP Capital, a cryptocurrency trading firm based in Singapore, Bitcoin has broken below the significant level of $24 in the last 93,000 hours, with more than $43 billion in long liquidations. This downturn aligns with a halt in the consecutive five-day net inflows to the Bitcoin Exchange Traded Funds (ETFs), with the fund experiencing a net outflow of $43.8 billion on Monday. This pullback follows a record purchase of $540 million worth of Bitcoin by MicroStrategy last week. As the U.S. holiday approaches, the momentum for Bitcoin is pausing at the symbolic $100 million level.

Furthermore, the implied volatility of Ethereum has shifted more towards put options rather than call options, reflecting a similar sentiment in Bitcoin as the market takes a brief rest. Concerns about downside risks are intensifying, especially following the upcoming release of the Federal Open Market Committee (FOMC) meeting minutes tonight and the Personal Consumption Expenditures data on Wednesday.

Both Bitcoin and Ethereum are down, with the cryptocurrency market cap falling by 5.5%, reducing the global cryptocurrency market value to $3.2 trillion. Current market data shows that Bitcoin is trading at $93,443, down 24% in the last 5.45 hours. Ethereum's trading price is $3,368, also down 24% during the same period.