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QCP Capital: Cryptocurrency Market Consolidates, Awaits US CPI Data Release
Summary: QCP Capital stated in a recent report that last week's non-farm payroll data fell short of expectations, with US stock futures continuing to rise, the two-year US bond yield dropping to a yearly low, and the market betting on a 72 basis point rate cut this year. However, the risk appetite brought by rate cut ...
QCP Capital stated in a recent report that last week's non-farm payroll data fell short of expectations, with US stock futures continuing to rise, the two-year US bond yield dropping to a yearly low, and the market betting on a 72 basis point rate cut this year. However, the risk appetite brought by rate cut expectations did not transfer to the crypto sector, as cryptocurrencies remained in a consolidation phase over the past week. The report indicated that the risk reversal index showed a significant increase in demand for put options on September contracts, potentially signaling a bearish outlook. Despite Bitcoin being removed from the S&P 500 Strategy and holding above $11,000, and Ethereum stabilizing above $4250, reflecting asset resilience. QCP Capital believes that this directionless trend more reflects the cautious sentiment in the market ahead of the US CPI release on Thursday, with short-term implied volatility expected to remain high. If inflation data exceeds the expected 0.3%, it may complicate the Fed's rate cut path, but considering limited tariff impacts, the likelihood of the Trump administration further escalating trade tensions is low.
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Link: QCP Capital: Cryptocurrency Market Consolidates, Awaits US CPI Data Release [Copy]
