According to ChainCatcher, QCP Capital posted on its official channel that the initial market reaction after the release of the non-farm payrolls data yesterday was positive, driving up risk assets. But as the market began to digest the expectation of a 50 basis point rate cut in September, the bullish sentiment took a drastic turn. After the release of the non-farm payrolls data, the market expected a 50 basis point rate cut with a 55% probability. But as of this morning, the market expected a 25 basis point rate cut to have a 70% chance, and the 50 basis point rate cut to have a 30% chance.
Even as cryptocurrencies moved lower, the options market was relatively calm. We even saw heavy put option selling throughout the trading session. We observed that front-end volatility was declining as the spot consolidated over the weekend.
