Inflation Concerns Rise Amid U.S. Economic Overheating

According to Odaily, QCP Capital has indicated that inflation appears to be resurfacing as the U.S. economy shows signs of overheating. Last Friday, non-farm payrolls surged by 256,000, significantly exceeding the forecast of 164,000. Following the release of last week's macroeconomic data, any speculation about imminent interest rate cuts has dissipated, leading to a sharp decline in the stock market. Additionally, tariffs potentially implemented during the Trump era have sparked further inflation concerns. Despite the unfavorable macroeconomic environment and persistent rumors about the Silk Road, cryptocurrencies seem to have found stability, with support levels at $91,000 and $3,100 remaining intact. Implied volatility is also at relatively low levels and continues to decline, with only a slight bearish skew in the front-end market before Trump's inauguration. While the volatility market shows little reaction, cryptocurrencies are not yet out of the woods. The macroeconomic storm continues to loom, 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 be a true test for cryptocurrencies to demonstrate their role as a hedge against inflation.