QCP Capital: US economy shows signs of overheating, cryptocurrency markets face three economic data tests this week

by
Alyssa Davidson

Posted: January 13, 2025 5:58 AM Updated: January 13, 2025 5:58 AM

by well

Correction and fact check date: January 13, 2025, 5:58 AM

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Singapore-based cryptocurrency trading firm QCP Capital sees signs of the U.S. economy overheating, especially after Friday’s unexpectedly higher non-farm payrolls (NFP) report, which showed 256,000 new jobs compared to a higher-than-expected 164,000 new jobs. published a market analysis representing . The data reduces the likelihood of an imminent rate cut while the stock market is falling. Moreover, the prospect of tariffs reminiscent of the Donald Trump administration has further amplified inflation concerns.

Despite these macroeconomic challenges and the ongoing uncertainty surrounding Silk Road rumors, Bitcoin and Ethereum appear to have gained some stability, holding key support levels at $91,000 and $3,100 for the time being. Implied volatility remains relatively low and there is only a slight front-end put skew, which is expected to persist beyond President Donald Trump’s inauguration.

The analysis is that while the volatility market is not showing any significant response, the cryptocurrency market has not yet escaped the risk. Key economic reports could potentially add pressure, including Producer Price Index (PPI) on January 14, Consumer Price Index (CPI) on January 15, and Unemployment Claims on January 16. QCP Capital notes that as the U.S. economy overheats, this week could be a key test for cryptocurrencies to prove they are an effective hedge against inflation.

For Bitcoin and Ethereum prices, see Market Fall

As of the latest update, Bitcoin is trading at $92,945 and is down about 0.95% over the last 24 hours. Bitcoin’s 24-hour low and high were recorded at $92,615 and $95,761, respectively. Bitcoin’s market capitalization has fallen below $2 trillion and currently stands at approximately $1.83 trillion.

Meanwhile, the price of Ethereum is at $3,157, down more than 2.64% in the last 24 hours. Ethereum’s 24-hour lowest and highest prices were recorded at $3,137 and $3,329, respectively.

The global cryptocurrency market decreased by about 1.85%, bringing the total market capitalization to about $3.22 trillion. Trading volume increased by 34.73% and now stands at $95 billion. Markets remain cautious as investors await major developments, especially in anticipation of the pro-cryptocurrency policies expected at President Donald Trump’s inauguration next week.