On January 14 and 15, the release of U.S. inflation reports could spark greater risk appetite in global markets, giving support to Bitcoin, analysts at QCP Capital say.

Asia Color – 14 Jan 25

1/ Global markets are recalibrating as the Fed signals a prolonged higher-rate environment.

The 10Y yield surged to 4.8%, its highest since late 2023. Markets now expect no rate cuts until October. While, equities futures dropped 1.5%, pulling #Bitcoin…
— QCP (@QCPgroup) January 14, 2025

According to the firm’s experts, current prices reflect the assumption that the Federal Reserve will maintain tight monetary policy for a prolonged period, with the possibility of further rate hikes. This opens the door to “positive surprises.”

Activity in Bitcoin options has grown in the puts below the key $90,000 support. Both expected volatility indicators and the equity market’s VIX index show that turbulence is likely to continue in January.

The analysts also foresee potential momentum from the incoming U.S. presidency. They believe that on his first day in office, Donald Trump will sign executive orders aimed at removing banking barriers for crypto companies and formalizing how digital assets are accounted for. Such actions could act as a bullish catalyst.

Previously, QCP Capital specialists called macroeconomic trends in the U.S. favorable for digital gold.

Context