QCP Capital: Crypto Market Volatility Expected to Surge as US Presidential Election Day Approaches
QCP Capital: Fed Rate Cuts Boost Market Sentiment, But Volatility Expected to Spike
Mars Finance reports that QCP Capital, in an official statement, commented on the Federal Reserve's announcement of a 50 basis point rate cut, along with plans for two more cuts this year and four in 2025. Despite Fed Chair Powell's ambiguous stance on the size and pace of future cuts, all eyes will be on upcoming labor data for guidance.
Since July 2022, the US 2-year/10-year yield curve, a recession indicator, has been inverted. However, it recently rose to +8 basis points, reflecting market optimism and a shift toward risk assets.
The S&P 500 attempted to reach a new high but closed lower following the FOMC meeting. In terms of options, implied volatility significantly declined post-FOMC, with Bitcoin's volatility dropping by 19 basis points and Ethereum's by 18 basis points.
Bitcoin jumped from $59,000 to $62,000 after the FOMC meeting. QCP Capital anticipates a surge in volatility as the US presidential election approaches, coinciding with the next FOMC meeting.
