QCP Capital: Bitcoin options trading volume shows caution, but the market still hopes to welcome a catalyst
PANews reported on January 14th that Singaporean cryptocurrency investment firm QCP Capital stated today that the global market has already digested the re-adjustment of expectations for a Federal Reserve rate cut. The yield on 10-year government bonds soared to 4.8%, a new high since the end of 2023, and the market currently expects no rate cuts until October. Stock futures opened down by 1.5%, causing Bitcoin to fall below $90,000 before steadily rebounding above $95,000.
What will happen next? Key PPI and CPI data are about to be released. We believe potential upside surprises may occur as markets begin adapting to the reality of long-term high interest rates; some people have even started considering the possibility of raising interest rates. The momentum of rising yields could test financial market resilience. In crypto space, caution is evident in BTC options flow with put options pushed below key support at $90k USD level . Short-term volatility and option spreads remain elevated while VIX index stays at a high level of 18.68 indicating volatility might continue into January.
However, there's still hope for catalysts in this market scenario . Reports suggest Trump may sign an executive order addressing "debanking" issues and abolishing controversial cryptocurrency accounting policies on his first day in office which could provide a boost for markets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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