Last night, the US 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 a staggering 272,000 jobs, showing that the US job market is stronger than expected. However, investors are not pleased with this situation, as it may reduce the urgency for the Federal Reserve to cut interest rates.
With the expectation for a rate cut declining, major US stock indices all closed in the red, and Bitcoin and other cryptocurrencies began to fall after the data was released, dropping to as low as $68,500. QCP Capital analysts released a market analysis stating that the unexpectedly strong non-farm payroll data and the rise in unemployment rate are enough to trigger risk aversion before the release of US inflation data and the FOMC rate decision next Wednesday.
Additionally, Roaring Kitty’s live stream attracted nearly a million viewers, coinciding with a sharp drop in GME stock price, as well as the collapse of altcoins and meme coins, resulting in a market value evaporation of over $40 billion, which may not be a coincidence.
The good news is that QCP Capital analysts have observed “bullish liquidity” emerging in the market during the decline, including selling aggressive put options and buying call option combinations, especially noticeable in Bitcoin. Since then, BTC and ETH have rebounded from their lows of $68,300 and $3,575, respectively.
The company concluded by recommending investors to adopt the “ERKO Seagull strategy,” a structured options combination aimed at protecting downside risks while capturing upside potential.
(Reprinted with permission from GT Radar)
About GT Radar
GT Radar focuses on building long-term and steady growth quantitative investment portfolios, with over 10 years of experience in stock market and cryptocurrency quantitative trading. The trading system integrates over 150 strategies, aiming to provide high adaptability and flexibility to ensure profits are obtained from the market in the most robust way.
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