The latest report from QCP, dated January 27th, reveals that shortly after President Trump’s inauguration, Bitcoin (BTC) has retraced below the $100,000 threshold, consequently exerting downward pressure on other risk assets. Compounding this scenario is the emerging narrative surrounding China’s development of the “Deepseek”, a sophisticated large-scale language model (LLM) that may challenge the U.S.’s dominance in the artificial intelligence landscape, potentially influencing the U.S. stock market. Current sentiments forecast that substantial bullish momentum for Bitcoin hinges critically on the validation of the “Strategic Bitcoin Reserve” initiative, as prior proposals like the “National Digital Asset Reserve” have failed to ignite positive market sentiment.
Market dynamics reveal a distinct preference for bullish options (Calls) post-March, highlighting a relatively conservative outlook among investors ahead of this quarter’s close. The looming implications of China’s advancements could motivate proactive measures from Trump, potentially positioning him as a pivotal figure in a fluctuating market. Market participants remain wary, as evidenced by the heightened volatility and elevated VIX index in anticipation of the forthcoming FOMC meeting on January 30th. Despite prevailing fluctuations, analysts believe that Bitcoin is likely to exhibit robust stability, oscillating within its established trading range.