QCP Capital: Further Declines In Equities Could Push Bitcoin Below $75K Support Level
In Brief
QCP Capital’s analysis highlights that markets are depending on the potential for either a “Donald Trump put” or a “Federal Reserve put” to provide support, though neither appears to be forthcoming.
Cryptocurrency trading firm based in Singapore, QCP Capital has provided an analysis of the current state of the cryptocurrency market, noting that markets experienced further declines overnight following the imposition of new tariffs by the US on China, pushing the total levy on Chinese imports to an unprecedented 104%.
According to the firm, volatility remains high, with the Cboe Volatility Index (VIX) staying above 40 for the third consecutive session. Traditional safe-haven assets are not performing as expected, with both gold and US bonds seeing sell-offs as investors attempt to de-risk and meet margin calls. The strategy of refinancing US debt at lower levels under the Donald Trump administration is showing signs of strain, as yields across the curve have surged. The 10-year US Treasury (UST) yields peaked at 4.50%, while 30-year yields briefly surpassed 5%, and credit spreads have continued to widen, signaling a broader deterioration in risk sentiment.
Instead of shifting strategies, Donald Trump seems to be intensifying his approach with retaliatory moves, using a martingale strategy. However, with China holding leverage, the question arises as to how much more the US can afford to escalate the situation.
QCP pointed out that the markets are now at a crossroads, relying on the possibility of either a “Donald Trump put” or a “Federal Reserve put” to provide support, but neither looks immediately forthcoming. With unemployment stable and inflation showing signs of picking up, the Federal Reserve is likely to keep interest rates steady for the time being. This contrasts with market expectations, which are pricing in four rate cuts in 2025, including speculation of a potential inter-meeting cut.
Bitcoin is consolidating around the $75,000 mark, though this stability could be disrupted if equities experience another sharp decline. Ethereum continues to underperform, drifting toward the $1,400 level, which was last seen in early 2023. In the face of elevated volatility, cryptocurrency yield strategies are becoming more relevant, with high implied volatility providing opportunities for carry through structured trades, QCP concluded.
Bitcoin And Global Crypto Market See Declines
As of the current writing, Bitcoin is trading at $77,435, reflecting a drop of approximately 1.92% over the past 24 hours. Its highest value during this period reached $80,197, while the lowest point was $74,627. The cryptocurrency’s market capitalization stands at $1.53 trillion, showing a decrease of 1.88% from the previous day.
Meanwhile, the global cryptocurrency market capitalization is $2.46 trillion, marking a 2.01% decline in the last 24 hours. The total trading volume across the cryptocurrency market for the same period is $129.96 billion, which represents a decrease of 15.85%.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, 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 crypto, AI, 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.
