TechFlow news: QCP Capital stated in its official channel that after yesterday's non-farm data release, the market initially reacted positively, driving risk assets higher. However, as the market began to digest expectations of a 50-basis-point rate cut in September, bullish sentiment shifted dramatically. Immediately after the non-farm payroll data release, markets priced in a 55% probability of a 50-bps rate cut. But as of this morning, the likelihood of a 25-bps cut has risen to 70%, while the probability of a 50-bps cut has dropped back to 30%.
Even as cryptocurrencies declined, the options market remained relatively calm. There was even significant put option selling observed throughout the trading session. We note that as spot prices consolidated over the weekend, front-end volatility has been declining.
