QCP Capital: The crypto market faces three major economic data tests this week

QCP Capital wrote that inflation is suspected to be back, and the US economy does show signs of overheating, with non-farm payrolls surging by 256,000 last Friday, far exceeding the forecast of 164,000. After the release of macro data last week, any rumors of an imminent rate cut disappeared, and the stock market fell sharply. The possible tariffs in the Trump era have also raised more inflation concerns. Despite the unfavorable macro environment and the lingering rumors of Silk Road, cryptocurrencies seem to have gained a foothold, as the support levels of $91,000 and $3,100 currently remain unchanged. Implied volatility is also at a relatively low level and continues to decline, with a slight bearish bias in the front-end market just before Trump's inauguration. Although the volatility market has not reacted much, cryptocurrencies have not yet escaped the dilemma. The macro storm is still shrouded, and the producer price index (January 14), consumer price index (January 15) and initial jobless claims (January 16) are about to be announced, which may add fuel to the market fire. As the U.S. economy heats up, this week will be a real test for cryptocurrencies to see if they can work as a hedge against inflation.