TechFlow news, cryptocurrency trading firm QCP Capital noted that NVIDIA's strong earnings report released last night triggered a classic "sell the news" reaction in today's crypto market.
As a result, Bitcoin dropped back to $59,000, while Ethereum traded weakly around $2,500.
QCP Capital said short-term implied volatility briefly spiked following the decline in spot prices but then retreated after NVIDIA's earnings, falling approximately 10 percentage points from its peak.
Risk reversals for both Bitcoin and Ethereum remain skewed toward put options through October, indicating ongoing market caution regarding downside risks.
The firm expects market volatility to continue declining ahead of next week’s nonfarm payrolls report, as markets position for potential Fed rate cuts. QCP Capital believes that with limited catalysts on the horizon, cryptocurrency prices may continue to trade sideways throughout September.
