According to QCP’s latest market update, the U.S. Federal Reserve is expected to keep interest rates unchanged this week, with market volatility likely to remain elevated.
Key Market Developments
-$400M BTC Short Position Shakes Market
Over the weekend, a Bitcoin whale opened a $400 million short position using 40x leverage.
The position is at risk of liquidation with just a 2.5% price move but remains open, accumulating $400,000 in funding fees so far.
Fear Dominates Sentiment
The Crypto Fear & Greed Index sits at 32 (Fear), signaling risk aversion in both crypto and equity markets.
Despite this, BTC has held above $80,000, showing resilience compared to U.S. stocks, which opened lower on Monday amid recession fears.
U.S. Macro Data and Fed Policy in Focus
U.S. retail sales data is due tonight, expected to clarify whether January’s 0.9% decline was a one-off or a sign of a broader slowdown.
U.S. Treasury Secretary Scott Bessent and Donald Trump have both warned of potential recession risks.
Fed Rate Decision This Wednesday
While last week’s lower-than-expected CPI report provided some relief, tariff risks and inflation concerns remain.
The Fed is unlikely to cut rates at this meeting, with markets instead looking for policy guidance amid Trump’s shifting economic strategy.
High market volatility is expected to persist as investors assess the Fed’s stance.
