QCP Market: Oil Prices and Fed Expectations Squeeze Risk Assets, BTC Trading in a Narrow Range

Odaily Odaily News, QCP Market stated that, influenced by the geopolitical situation in the Middle East and the hawkish expectations of the Federal Reserve, global market sentiment has turned risk-averse. Following the US naval blockade of Iranian ports, crude oil prices strengthened, with Brent crude oil returning above the $85 per barrel mark and recording a weekly gain of over 10%. In the US stock market, the semiconductor sector led the decline, with capital rotating out of high-beta AI tech stocks into defensive and energy sectors. BTC is consolidating in a narrow range between $63,000 and $65,000, while ETH continues to underperform. After a net outflow of approximately $8 billion, Bitcoin ETFs recorded net inflows for four consecutive days. Implied volatility for options is under pressure. Demand for upside BTC options ahead of the FOMC meeting at the end of the month has left market makers in a short gamma position on the upside.