QCP: Market Turns Cautious Ahead of Fed Meeting, Crypto Assets Focus on Interest Rates and Institutional Fund Flows

TechFlow news, July 27, QCP Capital stated that the market focus this week centers on the Federal Reserve interest rate meeting. US stocks showed divergence last Friday, with large-cap tech stocks remaining under pressure, and the US 10-year Treasury yield retreated after previously hitting highs since January 2025. The market is watching for the Fed's latest judgment on inflation and growth prospects.

The crypto market performed relatively steadily overall in July, but spot ETF fund flows weakened in the latter part of last week. On July 24, US-listed Bitcoin and Ethereum spot ETFs recorded a combined net outflow of approximately $311 million, renewing attention on whether institutional funds will continue to provide support.

Meanwhile, the options market indicates short-term sentiment is turning cautious, with investor demand for downside protection rebounding. Although positive funding rates and higher Ethereum volatility suggest market positions remain constructive, hedging demand is increasing simultaneously. Overall, this week's Fed meeting results may continue to dominate digital assets' sensitivity to interest rates and risk appetite.