QCP Capital Analyzes Shift to Risk-On Mode Amid Eased War Risks

QCP’s analysis holds importance for its potential shift in market dynamics and renewed investor sentiment, with early indications of the crypto sector gaining momentum.

QCP Capital, led by Darius Sit, reports easing war risk in crypto markets, impacting volatility with improved sentiment and technical indicators pointing to potential growth in Bitcoin and Ethereum. The Crypto Fear Greed Index increased, showing decreased market anxiety.

The Federal Reserve’s withdrawal of crypto-related bank guidance and U.S. Senate’s GENIUS Act passage reflect favorable regulatory changes, boosting stablecoin confidence and risk appetite. Darius Sit notes a shift towards more tactical investments over fear-driven selling.

Crypto assets like Bitcoin and Ethereum show resilience with waning panic, stabilizing prices despite geopolitical tensions. Institutional purchasing highlights positive treasury activity, indicating sustained demand.

Federal Reserve’s policy changes and U.S. congressional actions illustrate a supportive regulatory shift, enhancing the outlook for stablecoins and risk assets. QCP analysts signal moderation in volatility, with traders adjusting protective measures.

“Options skew has flattened, vol has normalized, and protective puts are being layered in—not overhedged—suggesting the market is shifting from outright fear to tactical risk-taking.” — Darius Sit, Founding Partner, QCP Capital

Arthur Hayes suggests potential market highs if current dynamics persist. Historical trends reveal a similar pattern where reduced geopolitical fears lead to increased risk-taking in crypto sectors, driving momentum for digital assets and broader DeFi markets.