Last night, the US Department of Labor released the May nonfarm payroll data, far exceeding expectations. The market had previously predicted an increase of 182,000 jobs, but the actual result was as high as 272,000 jobs, indicating a stronger job market in the US than expected. However, investors do not welcome this situation, as it may reduce the urgency for the Federal Reserve to cut interest rates.
With the decline in expectations for rate cuts, major US stock indexes all closed in the red, and bitcoin and other cryptocurrencies also began to fall after the data was released, dropping to levels as low as $68,500. QCP Capital analysts released a market analysis stating that the unexpected strength of the nonfarm payroll data and the increase in the unemployment rate are enough to trigger risk aversion ahead of next Wednesday’s US inflation data and FOMC rate decision.
Additionally, Roaring Kitty’s live stream attracted nearly a million viewers, with GME stock prices plummeting before that. Altcoins and meme coins also began to collapse, with a market value evaporation of over $40 billion, which may not be a coincidence.
But the good news is that QCP Capital analysts pointed out that during the downturn, they saw the emergence of “bullish liquidity” in the market, including selling aggressive put options and buying call option combinations, especially evident in bitcoin. Since then, BTC and ETH have rebounded from their lows of $68,300 and $3,575, respectively.
The company concluded:
In terms of investment, QCP Capital recommends investors to adopt the “ERKO Seagull strategy,” which is a structured options combination aimed at capturing upside potential while protecting against downside risks.
(Reprinted with permission from GT Radar)
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