QCP Capital analyzed that as global financial markets, as well as the dollar index, declined, extensive deleveraging for cash preservation is occurring rather than a typical flight to safety. Geopolitical uncertainties in the Middle East and concerns about the energy market were cited as major factors. QCP explained that as the U.S. officially rejected ceasefire terms for reopening the Strait of Hormuz over the weekend, concerns about energy supply disruptions were rekindled, leading to a surge in Brent crude prices. This week, with a concentration of major economic data releases, including the U.S. PCE price index and non-farm payrolls report, market volatility is expected to increase. Following the recent Fed interest rate hike, sensitivity to the possibility of further monetary policy adjustments has increased, leading to a rise in short-term implied volatility in the cryptocurrency options market, while spot Bitcoin ETF fund flows have shown a slowdown. If institutional capital inflows also slow down, Bitcoin could retest its existing support levels, and its future direction is expected to largely depend on geopolitical situations and the U.S. economic data released this week.
