QCP: Market volatility is likely to continue until the Fed and Bank of Japan clarify their policies

Overnight, the US came to the rescue again, providing much-needed support and liquidity to panicked markets, QCP Capital said in its latest analysis. This was particularly evident in the cryptocurrency space, with strong spot buying on Coinbase orders. By the end of the US trading session, BTC recovered to $56,000 and ETH recovered to $2,500. Macro markets rebounded strongly today, with Japanese stocks rising 9% today after falling 12% yesterday. US futures also pointed to a possible rebound after US ISM data showed an expansion in the services sector in July. It is certainly too early to draw conclusions about whether markets have returned to normal. Although the VIX index has retreated from yesterday's peak of over 65, it is still above 30. Asset prices are likely to remain volatile and markets will continue to be volatile until the Fed and the Bank of Japan clarify their policies. The Deputy Governor of the Bank of Japan is expected to announce a key update on Wednesday and the Fed will hold the Jackson Hole meeting on August 22-24. As for the rumors of an emergency rate cut, QCP believes this is unlikely because it will seriously damage the credibility of the Federal Reserve, exacerbate market panic, and make people believe that a recession is imminent. In addition, yesterday's risk-averse trend washed away a considerable portion of leverage. With prices plummeting, perhaps now is the time to consider accumulating BTC and ETH spot.