In its latest market insights, QCP Capital noted that the cryptocurrency market experienced a significant price correction today, accompanied by a sharp rise in front-end volatility. This phenomenon has been attributed to the market’s early reaction to impending BTC supply changes involving Mt. Gox’s transfer of assets related to the German government. Speculative forces may have oversold based on expectations, triggering massive liquidations as the price approached the $58,000 area.
However, QCP Capital believes that spot prices have shown stability, indicating a solid support base around $54,000. With the BTC front-end volatility falling significantly from a high of 65 to below 50, and the ETH front-end volatility also falling from 80 to 62, the panic in the market seems to be gradually dissipating.
In addition, the US employment data released today brought a new perspective to the market. The data for April and May were revised downward, which strengthened the expectation that the Fed would take a deflationary path and may prompt an early rate cut. Specifically, the probability of rate cuts in September and December has been increased. In summary, after experiencing short-term fluctuations, the market is gradually returning to rationality and re-evaluating the future direction of monetary policy.
