Immediate discount ends confidence in the Fed: QCP analysis
As the world financial markets discussed whether Monday's major declines were over, an important analysis came from Singaporean analysis and trading company QCP. In its analysis today, the company stated that the interest rate policies of the Fed and the Bank of Japan should be clearly seen in order to understand whether the crisis is over. The QCP also claimed that an emergency Fed discount would also end all trust in the institution.
QCP Capital, which provides investment consultancy services on cryptocurrencies, evaluated the latest financial crisis. The company stated that the U.S. state stepped in in one day over the declines and ended the panic atmosphere by providing liquidity to the markets.
'It's too early to see normalization...'
In the daily analysis of the QCP, it was emphasized that Bitcoin rose above $56 thousand and Ether to $2500, and the Japanese stock market closed today up 9% after yesterday's 12% decline, and the following statements were used:
“The USA came to the rescue overnight and ended the panic atmosphere in the markets with the liquidity it provided. We've also seen this in the Coinbase spot order books. Bitcoin rose above $56 thousand, Ether $2500. Japan stock markets, which fell 12% yesterday, also closed the day up 9%. So has the normalization returned? It's too early to say this... The horror index, which peaked with 65 yesterday, is still over 30 and the asset prices seem to continue to remain volatile... We don't know if normalization has started without clearly seeing the path that the Fed and the Bank of Japan are progressing.
'Urgent discount ends trust'
In the analysis, QCP Capital also stated that they do not expect the Fed to go to an urgent interest rate cut, and stated that if the institution takes such a step, this situation may reduce confidence in the Fed and increase the panic.
#Fed #RecessionOrDip?
#BTCMarketPanic