QCP Capital: Fed Likely To Keep Interest Rates Unchanged This Week, Market Volatility Expected To Remain High
In Brief
QCP Capital released a market analysis noting that equities remain the dominant focus and the Federal Reserve expected to keep rates steady at this Wednesday’s FOMC meeting, while volatility is likely to remain elevated.
Singapore-based cryptocurrency trading firm QCP Capital released a market analysis noting that over the weekend, a BTC whale opened a $400 million short position with an average entry price of $84,000 and a liquidation price around $86,000. This action contributed to market volatility on Sunday, as certain groups attempted to trigger a liquidation of a highly leveraged 40x position, which would have required a price move of just 2.5%. Despite these efforts, the position remains open with nearly $400,000 in funding fees accumulated.
QCP Capital also observed that the Crypto Fear & Greed Index is currently at 32% (Fear), reflecting ongoing risk-off sentiment, particularly in light of broader negative trends in equity markets. This sentiment reinforces Bitcoin’s role as a macro hedge. For example, on Friday, 300 contracts of BTC-17MAR25-80k-P were aggressively bought, indicating a clear strategy to hedge against potential weekend volatility.
Despite market noise, Bitcoin has maintained its position above $80,000, demonstrating resilience compared to equities. In contrast, US equity futures opened lower this morning amid renewed recession concerns. This follows comments from US Treasury Secretary Scott Bessent, who mentioned that a recession could not be ruled out, echoing sentiments previously voiced by Donald Trump. The markets will be looking to tonight’s US Retail Sales data for further insight, particularly to assess whether January’s 0.9% decline in retail sales signals a slowdown in consumer spending or merely a pullback after a strong finish to 2024’s holiday season.
Equities Remain In Focus As CPI Report Offers Temporary Relief
With the cryptocurrency narrative growing thin, equities are still the dominant focus. Last week’s softer-than-expected US Consumer Price Index (CPI) report offered temporary relief, but the Federal Reserve is unlikely to adopt a dovish stance soon. The possibility of rate cuts remains uncertain, given ongoing tariff risks and inflation concerns. As such, the Federal Reserve is expected to keep rates steady at this Wednesday’s FOMC meeting. However, volatility is likely to stay elevated as the market watches for any hints about the agency’s next move, particularly with the ongoing uncertainty surrounding Donald Trump’s policy changes.
At the time of writing, Bitcoin is priced at $83,328, reflecting a slight decline of approximately 0.44% over the past 24 hours. During this period, the cryptocurrency reached a high of $84,461 and a low of $82,047.
Meanwhile, the global cryptocurrency market capitalization is currently at $2.73 trillion, showing a modest decrease of 0.10% over the last 24 hours. The total market volume for cryptocurrencies in the past day stands at $74.03 billion, marking a significant increase of 65.34%, according to data from CoinMarketCap.
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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.
