A Major Storm Is Forming: QCP Capital Keeps an Eye on Key Data for the Fate of Cryptocurrencies

The latest analysis by QCP Capital provides an overview of the cryptocurrency market, which is trying to stabilize in the context of significant macroeconomic fluctuations. QCP Capital Highlights Macro Pressure on Bitcoin's Inflation Hedge Role On Monday, the company's market observers highlighted the potential recovery of important cryptocurrencies while noting the underlying challenges. QCP Capital noted that the strong performance of the US labor market, reflected in the non-farm payroll (NFP) data of 256,000—much higher than the forecast of 164,000—has raised concerns about inflation. The company further stated that speculation about an immediate interest rate cut has disappeared, continuing to negatively impact the stock market. Other concerns arise from the possibility of reapplying Trump's tariffs, which could increase inflationary pressures.

Despite the macroeconomic challenges, QCP recognizes that cryptocurrencies still maintain support levels at $91,000 for bitcoin (BTC) and $3,100 for ether (ETH). The company notes that implied volatility remains low, with only a slight skew towards short-term put options. This stability emerges even as the market grapples with lingering skepticism surrounding regulatory and legacy issues. QCP emphasizes that next week will be pivotal for cryptocurrencies, with key U.S. economic data releases—including the Producer Price Index (PPI) on January 14, the Consumer Price Index (CPI) on January 15, and the initial jobless claims on January 16—likely to impact the cryptocurrency market sentiment.

The company warns that these indicators can increase volatility, challenging the view that cryptocurrency is a feasible inflation hedge.