Surprising NonFarm Payrolls Data Is the Cryptocurrency Markets Major Pullback a Good Entry Opportunity

Surprising NonFarm Payrolls Data Is the Cryptocurrency Markets Major Pullback a Good Entry Opportunity

Surprising NonFarm Payrolls Data Is the Cryptocurrency Markets Major Pullback a Good Entry Opportunity

Last night, the U.S. Department of Labor released the May non-farm payroll data, which far exceeded expectations. The market had previously predicted an increase of 182,000 jobs, but the actual result was as high as 272,000, indicating a stronger job market in the U.S. than expected. However, investors are not happy with this situation because it may reduce the urgency for the Federal Reserve to cut interest rates.

Due to the declining expectations for interest rate cuts, the main stock indices in the U.S. all closed in the red, and Bitcoin and other cryptocurrencies also started falling after the data was released, dropping to as low as $68,500. In response to this, QCP Capital analysts released a market analysis stating that the unexpectedly strong non-farm payroll data and the rise in unemployment rates are enough to trigger risk aversion before the release of U.S. inflation data and the FOMC interest rate decision next Wednesday.

Furthermore, Roaring Kitty’s livestream attracted nearly a million viewers, while prior to this, GME stock prices plummeted, and meme coins and altcoins also began to collapse, with a market value evaporating over $40 billion, which may not be a coincidence.

But the good news is that QCP Capital analysts pointed out that they have seen “bullish liquidity” emerging in the market during the decline, including aggressively selling 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 option combination designed to protect against downside risk while capturing upside potential.

(Reprinted with permission from GT Radar)

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