Cryptocurrency Faces Challenges Amid Economic Concerns

According to PANews, Singapore-based crypto investment firm QCP Capital has highlighted concerns over rising inflation and signs of an overheating U.S. economy. Last Friday, non-farm payrolls surged by 256,000, significantly exceeding the forecast of 164,000. Following the release of macroeconomic data last week, any speculation about imminent interest rate cuts dissipated, leading to a sharp decline in the stock market. Additionally, tariffs potentially implemented during the Trump era have sparked further inflation worries. Despite the unfavorable macroeconomic environment and persistent rumors surrounding Silk Road, cryptocurrencies appear to have found stability, with support levels at $91,000 and $3,100 remaining intact. Implied volatility is relatively low and continues to decrease, with only a slight bearish tilt in the front-end market ahead of Trump's inauguration. While the volatility market shows little reaction, cryptocurrencies are not yet out of the woods. The macroeconomic storm looms large, with the Producer Price Index (January 14), Consumer Price Index (January 15), and initial jobless claims (January 16) set to be released, potentially fueling market volatility. As the U.S. economy heats up, this week will serve as a true test for cryptocurrencies to prove their role as a hedge against inflation.