Singapore a centered cryptocurrency trading company QCP Capital Bitcoin and evaluated the crypto market.
Cryptocurrency Company QCP Capital Says The Market Will Be Shaped By The FED Meeting
The company said in a statement on its Twitter account:
1/QCP Market Update – 27 Jan 23
In the blink of an eye, the first month-end option expiry of 2023 is here.
Market conditions are drastically different from the bearishness we saw in Q4 2022. The options market in its current state makes it seem like FTX never happened at all!
— QCP Capital (@QCPCapital) January 27, 2023
Market conditions are drastically different from the downtrend we saw in Q4 2022. In its current form, the options market makes it seem like FTX never existed.
BTC risk returns traded in multiple different types of positive territory (Buys are more expensive than Sells) last week for the first time since 2021.
This also shows how quickly market sentiment has moved from bearish to bullish.
ETH volatility has declined overall, indicating complacency as the market is pricing fears of collapse.
In light of the Shanghai Upgrade, the ETH end-March IV is expected to remain very high, which will allow more than 16 million ETH to be unlocked.
We think the market will be a little more cautious with the FOMC approaching in a week.
However, the February 1 FOMC will be just a statement followed by Powell’s press conference.
This means that we have to apply once again to the CPI for guidance.
This is where a potentially alarming situation arises. The next CPI, which will be released on February 14, next month’s Valentine’s Day, has the potential to break the hearts of the bulls.
Gold and USD price movements are also driving crypto prices.
What worries us here is that the USD is starting to show a large positive divergence as prices are trading in a terminating diagonal pattern.
The $1890-1900 support level is key for gold. Gold needs to stay above this level for the crypto uptrend to continue.
*Not investment advice.
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