QCP Capital‘s analysis highlights the options market’s pricing of a 1% move on the S&P 500 following Jerome Powell’s address, revealing a hint of unease beneath the surface of the otherwise strong equity performance.
Additionally, the firm notes that bitcoin’s perpetual funding rates plummeted to -13% over the weekend—the lowest point since 2022—emphasizing the sharp contrast in sentiment between traditional and crypto markets.
The report also points out the possibility of further unwinding of the USD/JPY carry trade, citing Bloomberg reports that funds like Vanguard are increasing their bets on additional Bank of Japan rate hikes.