Crypto Market Volatility To Persist Until Federal Reserve And Bank Of Japan Clarify Their Policies, Warns QCP Capital
In Brief
QCP Capital released its latest market analysis, noting that overnight, the United States supported and provided liquidity to the market.
Singapore-based cryptocurrency trading firm QCP Capital released its latest market analysis, noting that overnight, the United States provided crucial support and liquidity to the anxious market. This support was especially noticeable in the cryptocurrency sector, with strong spot buying observed on cryptocurrency exchange Coinbase order books.
Furthermore, by the end of the United States trading session, Bitcoin had recovered to $56,000 and ETH to $2,500. Simultaneously, the macro market saw a strong rebound, with the Japanese stock market rising 9% today after a 12% drop yesterday. United States futures also indicated a potential rebound following ISM data showing expansion in the service sector in July.
The company noted that it is still too early to determine if the market has stabilized. Although the VIX index has decreased from its peak of over 65 yesterday, it remains above 30. Additionally, asset prices are expected to remain volatile, and market conditions will be turbulent until the Federal Reserve and the Bank of Japan provide further clarity on their policies. The Deputy Governor of the Bank of Japan is anticipated to make a key announcement this Wednesday, while the Federal Reserve will hold the Jackson Hole meeting from August 22nd to 24th.
QCP views the rumors of an emergency rate cut as unlikely, arguing that such a move could damage the Federal Reserve’s credibility, heighten market panic, and lead people to believe that a recession is imminent.
The company also pointed out that yesterday’s risk-off trend led to a considerable reduction in leverage. With prices falling sharply, it suggests that this might be an opportune time to consider accumulating BTC and ETH spot positions.
Bitcoin Rebounds To Trade Near $55,000 Mark, ETH Surpasses $2,400
As of the current writing, Bitcoin is trading at $54,975, reflecting an increase over the past 24 hours. Its 24-hour low and high are recorded at $49,751 and $56,245, respectively. Additionally, Bitcoin’s dominance has decreased by 0.28% over the past day to 55.78%, suggesting that altcoins have performed better today.
At present, the price of Ethereum is $2,438, marking an increase of over 7.70% in the past 24 hours. The 24-hour low and high for ETH are recorded at $2,190 and $2,546, respectively.
The overall cryptocurrency market capitalization has increased by 9.09% to $1.95 trillion today. Additionally, the total cryptocurrency market volume has decreased by 29.01% over the past 24 hours, amounting to $147.18 billion, according to CoinMarketCap data.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
