PANews reported on July 31 that QCP Capital, a Singapore-based crypto investment firm, said in a statement: “Macro volatility has intensified. With the withdrawal of the Seven Sisters of the U.S. stock market, the Nasdaq index has fallen 10% from its peak. As volatility increases, foreign exchange carry trades such as long USDJPY (USDJPY) and short USDMXN (USDMXN) are being unwound. Over the past two months, the Volatility Index (VIX) has been trading in a range of 12-14 and has now risen to a high of 19.50. Multiple factors have led to increased market uncertainty: 1. Value at Risk (VaR) shock: Risk managers are forcing traders to reduce their positions; increased selling leads to lower prices, which in turn leads to increased volatility through a feedback loop. 2. Overvaluation of stocks and overly high profit targets: When companies fail to meet their targets, participants begin to question their expectations for the future. 3. Global risk aversion: Despite the recent weakness in the U.S. dollar, both the Australian dollar (AUDUSD) and the New Zealand dollar (NZDUSD) have plunged; commodities such as oil and copper have fallen 10-15% this month as concerns about a global economic slowdown have intensified. We expect volatility to increase ahead of the Federal Open Market Committee (FOMC) meeting tonight. We do not expect a rate cut and place more weight on the meeting statement and Powell's press conference afterward. Our base case is for one rate cut each in September and December. We remain wary of any deviation from current expectations, which could trigger risk-off moves in all assets, including cryptocurrencies. Such a scenario would indicate the Fed's view on the intensification of economic challenges. "
QCP Capital said: "In the cryptocurrency field, we finally saw a net inflow of $33.7 million into the Ethereum ETF. This brought a much-needed boost to the price of Ethereum, which has been lagging behind Bitcoin in the past month. Nevertheless, it is expected that the Ethereum ETF "ETHE" will continue to see outflows in the next two weeks. The US government recently transferred Silk Road Bitcoins worth 30,000 Bitcoins, which brought uncertainty to the cryptocurrency market. Regarding trading ideas, Bitcoin failed to break through $70,000 for the sixth time. We still believe that Bitcoin will continue to trade in a certain range. As the outflow of funds from the Ethereum ETF decreases in the next two weeks, the price of Ethereum will catch up with Bitcoin, so long Ethereum is the first choice. Our goal is to break through $4,000, which is the high point in 2024."
