According to PANews, Singapore-based crypto investment firm QCP Capital has reported that Monday's market turbulence may have felt like a nightmare for many, as most assets have recovered from a massive sell-off. The VIX index traded over 65%, indicating that traditional financial markets are now experiencing the daily volatility typical of the cryptocurrency market. While the initial shock may have subsided, QCP Capital anticipates continued selling pressure in the coming days due to systemic funds reducing their exposure amid increased volatility.
QCP Capital advises closely monitoring the Nasdaq, Nikkei index, and USD/JPY exchange rate, as cross-asset correlations remain high in the short term. The firm does not expect the Federal Reserve to implement emergency rate cuts in September or during the October meeting recess, as such actions could exacerbate market panic. As the phase of sharp market volatility concludes, QCP Capital leans towards establishing long-term bullish positions in anticipation of a rate-cutting cycle. Given the high volatility, they prefer trading within a 3-6 month timeframe to avoid being affected by market fluctuations.
