Macro Storm Brewing: QCP Capital Eyes Key Data for Crypto's Fate

QCP Capitals latest analysis provides a snapshot of a crypto market attempting to stabilize amidst significant macroeconomic turbulence.

QCP Capital Highlights Macro Pressure on Bitcoins Inflation Hedge Role

On Monday, the firms market observations highlight the resilience of key cryptocurrency levels while noting potential challenges ahead. QCP Capital noted that the U.S. labor markets strong performance, reflected in the nonfarm payroll (NFP) data of 256,000—well above the forecasted 164,000—has reignited inflation fears.

The firm added that speculations about immediate interest rate cuts have dissipated, further impacting equity markets negatively. Additional concerns stem from potential reinstatements of Trump-era tariffs, which could exacerbate inflation pressures.

Bitcoin tapped a low not seen since Nov. 18, 2024, when it dropped to $89,164 on Monday morning.

Despite macroeconomic challenges, QCP observed that cryptocurrencies have maintained support levels at $91,000 for bitcoin (BTC) and $3,100 for ether (ETH). The firm noted that implied volatility remains subdued, with only a slight put-skew on the short-term horizon.

This stability comes even as the market grapples with lingering skepticism related to regulatory and legacy issues. QCP emphasized that the coming week will be pivotal for cryptocurrencies, with significant U.S. economic data releases—including the Producer Price Index (PPI) on Jan. 14, Consumer Price Index (CPI) on Jan. 15, and unemployment claims on Jan. 16—potentially influencing crypto market sentiment.

The company warned that these indicators could add volatility, challenging the narrative of crypto as a viable hedge against inflation.