"Despite Tariff Uncertainty...Bitcoin's Short-term Volatility Expected to Remain Low"

Despite the risk-off sentiment brought about by tariff uncertainty, an analysis has been released suggesting that Bitcoin (BTC)'s short-term volatility will remain low.

On the 2nd (local time), QCP Capital stated in a report, "With the United States raising tariffs on steel and aluminum to 50%, a risk-off mood has formed across the market," adding, "Since last Friday, crypto asset futures positions worth a total of $1 billion have been liquidated, and the Bitcoin spot ETF's 34-day streak of inflows has also come to a halt." The report continued, "Nevertheless, Bitcoin's short-term volatility is likely to remain low," and noted, "It is showing remarkably strong performance."

The firm especially highlighted the buying trend of institutional investors and option trading indicators. QCP said, "Despite the risk-off sentiment, companies such as Strategy and Metaplanet are instead buying Bitcoin," and added, "Short-term option volatility for Bitcoin is also gradually decreasing." In addition, QCP explained, "Risk Reversal is also returning to normal levels," along with, "perpetual futures funding rates have also recovered to neutral levels."

Looking ahead, the report described a range-bound outlook for Bitcoin. It stated, "Going forward, tariff disputes are likely to become a major macroeconomic variable," and, "With a lack of new catalysts, Bitcoin is expected to remain in a range-bound trend for the time being."