QCP: BTC and ETH implied volatility plummeted after the FOMC meeting, and is expected to surge again as election day approaches
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Odaily Odaily News QCP Capital said in its latest market analysis that the Federal Reserve announced a 50 basis point rate cut last night and plans to cut interest rates twice more this year and four more times in 2025. As Powell is vague about the size and speed of subsequent rate cuts, everyone will be watching the upcoming employment data for signs. The US 2-year/10-year Treasury yield spread, an indicator of recession, has been inverted since July 2022, but has recently increased to +8 basis points, reflecting market optimism and a shift toward risk-on assets. The S&P 500 attempted a new high but closed lower after the FOMC meeting. In options, implied volatility plummeted after the FOMC meeting, with BTC falling 19 vols and ETH falling 18 vols. After the FOMC, BTC rebounded from $59,000 to $62,000, while ETH was around $2,400. It believes that volatility is expected to surge as Election Day approaches, just after the next FOMC meeting.
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