TechFlow news, January 14 — QCP Capital's latest analysis indicates that global markets are digesting the impact of adjusted expectations for Federal Reserve rate cuts. The 10-year U.S. Treasury yield surged to 4.8%, the highest since the end of 2023, with markets now pricing in no rate cuts before October at the earliest. Equity index futures opened down 1.5%, causing Bitcoin to briefly drop below $90,000 before recovering above $95,000.
QCP Capital expects upcoming PPI and CPI data may carry upside risks. Markets are adapting to the reality of prolonged high interest rates, with some investors even contemplating the possibility of further rate hikes. The Bitcoin options market reflects cautious sentiment, as traders roll put options to strike prices below the $90,000 support level. Near-term volatility and butterfly spreads remain elevated, while the VIX holds at 18.68, signaling continued market volatility through January.
The report also notes that Trump may sign an executive order on his first day in office addressing "debanking" issues and repealing controversial crypto accounting policies, which could serve as a positive catalyst for the market.
