Singapore-based cryptocurrency firm QCP Capital evaluated the impact of non-farm payroll data released last Friday on the market and cryptos.
QCP analysts stated that they increased their expectations for an interest rate cut following the weak employment data, and that risk appetite increased with the expectation of an interest rate cut, but this situation was not reflected in the cryptocurrency market.
At this point, the stock market recovered, gold reached a new high, but Bitcoin (BTC) and altcoins moved independently and performed sideways.
Analysts stated that the market sees horizontal consolidation as a downward trend and that demand for put options expiring in September has increased.
On the other hand, analysts stated that despite the increasing put trend and ETF outflows, BTC held above $110,000 and Ethereum (ETH) above $4,250, claiming that this consolidation was a reflection of the resilience of cryptocurrencies.
Analysts also noted a lack of direction and confidence in the cryptocurrency market, saying this lack could be due to the market’s cautious attitude towards Thursday’s US inflation report.
QCP analysts finally added that unless there is a clear catalyst, Bitcoin and the cryptocurrency market may continue to consolidate.
If the CPI rises 0.3% more than expected, the Fed’s path to rate cuts could become complicated.
However, considering the customs duty factor, the market will not be too surprised by this situation.
Even if the tariff policy causes a temporary spike in data, given the current economic climate, it is unlikely the Trump administration will further escalate trade disputes.
Therefore, unless this week’s inflation data data leads to an overreaction, the cryptocurrency market will continue to see strong support as long as there is no significant catalyst.”
*This is not investment advice.