QCP Capital: The market will not rise sharply before Trump confirms the "Bitcoin strategic reserve"

Odaily Planet Daily News QCP Capital posted on its channel that a week after Trump took office, as the news of China's Deepseek continued to spread since the weekend, Bitcoin, along with other risky assets, fell back below $100,000. China's large language model (LLM) has broken the US's dominance in the field of artificial intelligence with its cost-effectiveness and pioneering open source technology, posing a potential threat to the US stock market. It is worth paying attention to what drastic measures the Trump administration will take to save the US stock market. As for Bitcoin, we do not foresee a sharp rise before the establishment of a strategic Bitcoin reserve is confirmed. The Trump administration's assessment of the "National Digital Asset Reserve" is not enough to maintain the market's recent optimism. Since at least March, risk reversals have still favored call options, indicating that the market will not have much to look forward to until the end of the quarter. Volatility and the VIX index continued to be high last Friday as the market precariously awaited the Federal Open Market Committee (FOMC) meeting on Thursday (January 30). Despite today’s market volatility, and regardless of Thursday’s outcome, Bitcoin should remain relatively strong as it remains within a familiar trading range.