QCP Capital: Crypto Assets Continue To Mirror Stocks As Market Eyes Key Economic Data
In Brief
QCP Capital notes that markets are focusing on the upcoming NFP report and CPI release, as these data will significantly influence the market’s direction and economic outlook.
Cryptocurrency trading firm based in Singapore, QCP Capital shared a market analysis, describing this week’s cryptocurrency markets as highly volatile, with fluctuations tied to shifting macroeconomic factors. The key triggers for the volatility include Donald Trump’s reserve plan, the imposition of confirmed tariffs on Canada, Mexico, and China, and swift retaliatory actions from Canada and China, all of which have intensified an already uncertain environment. Bitcoin experienced a surge to $94,000, then dropped to $83,000, stabilizing around $88,000 amidst fluctuating market conditions.
During this period, the US Commerce Secretary suggested the possibility of a partial rollback of tariffs, which could be announced after Donald Trump’s State of the Union address. With macroeconomic conditions in flux, cryptocurrency remains closely correlated with equities, and its price movements are mirroring broader economic shifts, according to QCP Capital.
This Friday marks an important event—the first-ever White House Crypto Summit. However, the market remains cautious, as no clear executive orders, funding commitments, or congressional support are currently in place. As a result, investors are uncertain, viewing the summit as a high-stakes event. There is anticipation around whether it will act as an unexpected catalyst for rising prices or reveal the vulnerability of the cryptocurrency market, potentially leading to a sell-off.
On a broader economic note, corporate bond spreads are widening, with high-yield spreads now 290 basis points above Treasuries, and the spread between investment-grade and high-yield bonds standing at 200 basis points. While this is not yet a sign of panic, QCP Capital advises monitoring the trend closely.
Adding to the uncertainty, the Atlanta Federal Reserve’s GDP forecast turned negative at -2.8% just two days ago, raising concerns about stagflation. Markets are now focusing on upcoming key economic data releases, including the Non-Farm Payroll (NFP) report this Friday and the Consumer Price Index (CPI) release next Wednesday. These reports are expected to play a crucial role in shaping the market’s direction and offering more clarity on the broader economic outlook.
Bitcoin And Ethereum See Gains, Crypto Market Rises 7.21%
At the time of writing, Bitcoin is trading at $90,316, reflecting an increase of over 8.40% in the past 24 hours. The cryptocurrency reached an intraday low of $81,947 and a high of $90,813 during the period.
Meanwhile, ETH is currently trading at $2,144, with its intraday low and high recorded at $2,019 and $2,271, respectively, in the last 24 hours.
Overall, the cryptocurrency market has gained approximately 7.21% over the past day, with a market capitalization of $2.95 trillion, according to CoinMarketCap data. Additionally, liquidations have eased after surpassing the $1 billion threshold yesterday, now resting below $500 million, as reported by Coinglass.
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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.
