QCP London Colour – 07 Aug 2024

Monday's market turmoil may feel like a fever dream for many as assets have largely recovered from the massive sell off. TradFi finally had a taste of a regular day in crypto as the VIX traded above 65%!

While the initial shock may have passed, we foresee continued selling pressure in the coming days as systematic funds continue to pare exposure in light of the heightened volatility.

We recommend keeping a close eye on Nasdaq, Nikkei, and USDJPY as cross-asset correlations remain high in the near term.

We believe the Fed will refrain from an emergency cut in Sep, or an intermeeting cut in Oct, as that will exacerbate panic.

Trade Idea
With the acute phase of market volatility over, we favour establishing longer term bullish positions in anticipation of a cutting cycle. We prefer trades with a 3-6mth time horizon to prevent getting chopped given higher volatilities.

BTC Win Range
Get paid 5x if BTC fixes within the range.
Payout: 5x
Maturity: 27DEC24
Range: 75k to 90k