QCP Capital Warns Of Potential Upside Risks Following PPI And CPI Data Release
In Brief
QCP Capital notes in its latest market analysis that potential surprises in the upcoming PPI and CPI data could lean to the upside as markets continue to adjust to a prolonged period of elevated interest rates.
Singapore-based cryptocurrency trading firm QCP Capital has released a market analysis, noting that global markets have now adjusted to the revised outlook for Federal Reserve rate cuts. The 10-year Treasury yield has surged to 4.8%, the highest level since late 2023, as markets price in no rate cuts until October. Equity futures dropped 1.5% at the opening, briefly pushing Bitcoin below $90,000 before it recovered to trade above $95,000.
Upcoming Producer Price Index (PPI) and Consumer Price Index (CPI) data are expected to be critical. According to QCP Capital, potential surprises could lean to the upside as markets increasingly adapt to a longer period of elevated interest rates. Some observers are even considering the possibility of a rate hike, signaling the complex dynamics of the current financial landscape.
The rising yield momentum could challenge financial market stability, with its effects extending into the cryptocurrency sector. A cautious tone is evident in Bitcoin options activity, with protective puts being adjusted below the critical $90,000 support level. Additionally, short-term implied volatilities and skew spreads (flies) remain elevated. The VIX, a key measure of market volatility, stands at 18.68, suggesting that heightened market fluctuations may continue throughout January.
Despite this, there remains optimism for a potential market catalyst. Reports suggest that former U.S. President Trump could sign executive orders upon taking office, addressing issues such as “de-banking” and potentially repealing controversial crypto legislation.
Bitcoin Price Soars To $96,500 Amid Volatile ETF Flows And Surge In Market Activity
As of now, Bitcoin is trading at $96,500, reflecting a 6.27% increase over the past 24 hours. During this period, Bitcoin’s price ranged from a low of $89,941 to a high of $97,246.
According to data from SoSoValue, spot Bitcoin exchange-traded funds (ETFs) experienced outflows on Monday, amounting to $284 million. The Grayscale Bitcoin Trust (GBTC) recorded a single-day net outflow of $89.01 million, bringing its cumulative historical net outflow to $21.66 billion. In contrast, the Grayscale Bitcoin Mini Trust ETF reported no net outflows for the day, with its total historical net inflow currently standing at $924 million. The BlackRock Bitcoin ETF (IBIT) led single-day net inflows, receiving $29.46 million yesterday, raising its cumulative net inflow to $37.70 billion.
The global cryptocurrency market capitalization has reached $3.33 trillion, representing a 6.15% increase over the past day. Additionally, trading volume has surged, climbing 48.06% to reach $161 billion, 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.
