Cryptocurrency markets are showing signs of caution as investors increasingly hedge against downside risks, according to a report from QCP Capital.
The QCP highlighted growing concerns about potential downside risks stemming from a combination of factors.
Tonight’s Federal Open Market Committee (FOMC) minutes: Investors will be closely analyzing the minutes for insights into future U.S. monetary policy.
Personal Consumption Expenditures (PCE) data due on Wednesday: A key inflation indicator that can influence market sentiment.
With these events on the horizon and the US holiday season approaching, the lack of an immediate bullish catalyst has stalled Bitcoin’s progress towards the symbolic $100,000 milestone.
The shift in ETH implied volatility suggests that investors are prioritizing downside protection over speculative bets on price increases. Similar trends in BTC options point to a broader market sentiment of caution as investors brace for potential near-term price declines.
Market Outlook
QCP noted that while long-term crypto sentiment remains positive, the current pause reflects uncertainty over macroeconomic conditions and their impact on crypto assets. Without a significant driver in the short term, BTC’s path to new highs may remain elusive as markets enter a calmer period.
*This is not investment advice.
