TL;DR
- During the recent dip in Bitcoin and Ether prices, QCP Capital observed bullish flows on its trading desk, indicating a bullish sentiment.
- Mixed economic data in the United States triggered a “risk-off” reaction in the market, with investors pulling away from riskier assets like cryptocurrencies.
- According to CME Group projections, the FOMC is expected to maintain current interest rates at its upcoming meeting.
Singapore-based trading firm QCP Capital has reported a particular situation unfolding in the crypto market. According to their analysis, during the recent dip in Bitcoin and Ether prices, they observed bullish flows on their trading desk. This suggests that despite the price drop, investors showed particular interest in buying aggressive call options and selling put options.
This phenomenon coincides with the mixed economic context in the United States. On one hand, Department of Labor data revealed a solid increase of 272,000 jobs in May, surpassing market expectations. However, this positive news was accompanied by a rise in the unemployment rate, which climbed to 4.0%.
In response to this mix of economic figures, the market experienced what is known as a “risk-off” reaction. This means that investors pulled away from assets considered riskier, such as cryptocurrencies, due to uncertainty surrounding inflation data and the upcoming Federal Open Market Committee (FOMC) meeting in the United States.
Bitcoin and Ethereum Will Rise in the Future
However, despite the price drop in Bitcoin and Ether following the data release, QCP Capital noticed an opposite trend on their trading desk. Investors showed a inclination to buy call options, a strategy betting on prices rising in the near future. In other words, it suggests that there is an underlying optimistic sentiment in the market, even amidst economic uncertainty.
It’s worth noting that, according to CME Group projections, the FOMC is expected to maintain current interest rates at its upcoming meeting. However, some analysts predict rate cuts starting from September, which could have crucial implications for the cryptocurrency market.
The combination of economic and financial factors is influencing the direction of Bitcoin and Ether prices. Although the context is mixed and there is uncertainty on the horizon, the bullish flows observed by QCP Capital suggest that some investors are betting on a market rebound in the near future.
