QCP Capital: The US economy shows signs of overheating, the market faces three major economic data tests this week

PANews reported on January 13 that Singaporean cryptocurrency investment firm QCP Capital stated today that inflation seems to be returning, with the US economy indeed showing signs of overheating. Last Friday's non-farm employment surged by 256,000, far exceeding the forecasted 164,000. After last week's macroeconomic data release, any rumors about imminent interest rate cuts have vanished and the stock market has also plummeted significantly. The tariffs potentially implemented during Trump's era have also sparked more concerns about inflation.

Despite unfavorable macroeconomic conditions and persistent rumors about Silk Road, cryptocurrencies seem to have stabilized as support levels at $91,000 and $3100 remain unchanged for now. Implied volatility is also relatively low and continues to decline slightly bearish in front-end markets just before Trump’s inauguration ceremony.

Although the volatility market hasn't reacted much yet, cryptocurrencies are still not out of trouble. Macroeconomic storms continue to loom with Producer Price Index (January 14), Consumer Price Index (January 15) and Initial Jobless Claims (January 16) soon to be announced which could all add fuel to the fire in financial markets. As the US economy heats up this week will be a real test for cryptocurrencies; it remains to see whether they can serve as an effective hedge against inflation.