QCP Capital Analysis: Markets Adjusting to Revised Fed Rate Cut Expectations

According to BlockBeats, on January 14, QCP Capital's latest analysis indicates that global markets have adapted to the revised expectations of the Federal Reserve's interest rate cuts. The 10-year Treasury yield surged to 4.8%, marking its highest level since the end of 2023, with markets now anticipating a rate cut not before October. Stock index futures opened with a 1.5% decline, causing Bitcoin to drop below $90,000, but it subsequently rebounded steadily to over $95,000.The Producer Price Index (PPI) and Consumer Price Index (CPI) data are set to be released soon. There is a potential for unexpected upward trends as the market begins to adjust to the reality of a prolonged high-interest-rate environment, with some even considering the possibility of rate hikes.The momentum of rising yields may test the resilience of financial markets. In the cryptocurrency sector, caution is particularly evident in Bitcoin options flows, with put options moving below the critical $90,000 support level. Short-term volatility and option combinations remain elevated, while the VIX volatility index stays above 18.68, indicating that market volatility will persist in January. Nonetheless, there is hope for catalysts. Reports suggest that Trump may sign an executive order on his first day in office to address "debanking" issues and repeal controversial cryptocurrency accounting policies, potentially providing a boost to the market.