QCP Capital: Bitcoin options front-end volatility drops 6%, market may take a breather

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QCP analysis points out that cryptocurrencies rose for the third consecutive day yesterday, with BTC testing $64,000 again and ETH returning to $2,500. The rise was supported by strong inflows into BTC and ETH spot ETFs. Over the past two days, the BTC ETF recorded a net inflow of $250.3 million, while the ETH ETF had a net inflow of $8.1 million. With no major macroeconomic events happening before this Friday, aside from the upcoming PCE price report, cryptocurrency prices may take a breather here as enthusiasm for rate cuts fades. On the options side, front-end BTC volatility is down 6 points from yesterday's peak, and volatility continues to decline as the market adjusts to the path of policy normalization.

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