market volatility

QCP Capital: Trump's cryptocurrency reserve plan triggers market volatility, trade tensions escalate risk asset pullback

ChainCatcher news, QCP Capital's latest analysis points out that the brief market rebound following Trump's announcement of a cryptocurrency reserve plan on Truth Social on Sunday quickly faded, with risk assets generally pulling back and erasing most of Sunday’s gains. Trump's renewed push for tariffs on Canada, Mexico, and China intensified the sell-off, reinforcing investors' concerns about escalating trade tensions.The analysis indicates that the unexpected inclusion of XRP, SOL, and ADA tokens in the reserve plan has sparked divisions within the crypto community, with initial optimism about the project's advantages shifting to a more in-depth examination. Current doubts mainly focus on potential contradictions between the plan and DOGE cost-cutting measures, as well as the lack of transparency regarding the sources of reserve funds.QCP Capital states that this market decline may exacerbate the pressure Trump faces, especially after receiving strong support and donations from the crypto community during his campaign. Even the U.S. Securities and Exchange Commission (SEC) suspending and withdrawing enforcement cases against crypto companies has failed to stop the market sell-off, highlighting a broader risk-averse sentiment.The report notes that after a month of low cross-asset volatility, market anxiety has resurfaced due to the prospect of tariff confrontations potentially suppressing global growth. This shift is reflected in the 10-year U.S. Treasury yield dropping 50 basis points over the past two weeks, the VIX surpassing 22, and Bitcoin's short-term volatility sharply rising by 8 points since the weekend, with a significant skew towards bearish options.Previous news, Trump's launch of a cryptocurrency strategic reserve may be aimed at boosting approval ratings, with the market focusing on Friday's White House cryptocurrency summit.

QCP Capital: Macroeconomic market volatility has eased, and Bitcoin still needs key catalysts to break through $100,000

ChainCatcher news, QCP Capital's latest analysis points out that Bitcoin recently faced $1.5 billion in long liquidations, with the price plummeting by 3,000 points before rebounding at the critical support level of $95,000, currently consolidating in the $97,000-$98,000 range. This round of correction has also affected many altcoins.In terms of institutional entry, Bitcoin and Ethereum spot ETFs recorded net inflows for 8 and 11 consecutive days, respectively. Mining company Riot Platforms announced it would follow MicroStrategy's strategy, planning to issue $500 million in zero-coupon convertible bonds to purchase Bitcoin, a plan that has already garnered strong market demand. Notably, Microsoft shareholders will vote today on incorporating Bitcoin into the balance sheet. Although the board recommends against it, approval could lead to an unexpected surge. Meanwhile, reports indicate that Amazon shareholders are also pushing for Bitcoin to be used as a reserve asset.QCP points out that with the political situation stabilizing in France and South Korea, and China's commitment to launching economic stimulus policies, macro market volatility has eased. Bitcoin and Ethereum's short-term volatility remains high and leans towards put options. Analysts believe that a breakthrough of the $100,000 threshold for Bitcoin still requires key catalysts.
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