QCP Capital: US Economy Shows Signs Of Overheating, Crypto Market Faces Three Economic Data Tests This Week
In Brief
QCP Capital highlights that amid signs of an overheating US economy, the crypto market is preparing for the PPI, CPI, and Unemployment Claims reports this week, which could potentially add to the pressure.
Singapore-based cryptocurrency trading firm QCP Capital released a market analysis indicating signs of an overheating US economy, particularly after Friday’s unexpectedly high non-farm payroll (NFP) report, which showed 256,000 new jobs compared to the forecasted 164,000. This data has diminished the possibility of imminent rate cuts while equities have fallen. Additionally, the prospect of tariffs reminiscent of the Donald Trump administration has raised further inflation concerns.
Despite these macroeconomic challenges and ongoing uncertainties surrounding Silkroad-related rumors, Bitcoin and Ethereum appear to have gained some stability, with key support levels of $91,000 and $3,100 holding for the time being. Implied volatility remains relatively low, with only a slight put skew at the front end, expected to persist until after Donald Trump’s inauguration.
The analysis emphasizes that while the volatility market has shown little reaction, the cryptocurrency market is not out of danger yet. Key economic reports, including the Producer Price Index (PPI) on January 14th, the Consumer Price Index (CPI) on January 15th, and Unemployment Claims on January 16th, could potentially add to the pressure. QCP Capital notes that as the US economy heats up, this week may serve as a major test for cryptocurrencies to prove themselves as an effective hedge against inflation.
Bitcoin And Ethereum Prices See Market Decline
As of the latest update, Bitcoin is trading at $92,945, showing a decrease of approximately 0.95% over the past 24 hours. The 24-hour low and high for Bitcoin were recorded at $92,615 and $95,761, respectively. Bitcoin’s market capitalization has fallen below the $2 trillion mark, now standing at about $1.83 trillion.
Ethereum, meanwhile, is priced at $3,157, reflecting a decline of over 2.64% in the last 24-hour period. The 24-hour low and high for Ethereum were recorded at $3,137 and $3,329, respectively.
The global cryptocurrency market experienced a decline of approximately 1.85%, bringing the total market capitalization to around $3.22 trillion. Trading volume has increased by 34.73%, now reaching $95 billion. The market remains cautious as investors await key developments, particularly in anticipation of the pro-crypto policies expected from President Donald Trump’s inauguration next week.
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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.
