On March 6, cryptocurrency trading firm QCP Capital released its latest weekly market review, stating that while geopolitical events dominated global market news this week, the real driver of market trends was the inflationary pressure from rising oil prices.
The report points out that the market initially showed a typical risk-averse trend, but then quickly evolved into a pattern of "inflation superposition": rising energy price risks kept interest rates high, US Treasuries failed to provide a safe haven as before, the US dollar remained strong, and market volatility rotated in Asian markets.
In the crypto market, Bitcoin performed relatively steadily at the beginning of the week and rose on Thursday, driven by strong inflows into spot ETFs and a rapid increase in open interest, but the gains were subsequently given back as macro market volatility returned.
QCP stated that the key variable in the market going forward lies in the trend of energy prices: if oil prices continue to rise, interest rates may remain high and suppress risk assets; if energy risks ease, it may reopen upside potential for high-beta assets.
