QCP: Ahead of the Federal Reserve meeting, the market is cautious; crypto assets are focused on interest rates and institutional fund flows

Deep Tide TechFlow update: On July 27, QCP Capital said that this week’s market focus is centered on the Federal Reserve’s interest-rate decision. U.S. stocks were mixed last Friday; large technology shares continued to face pressure, and U.S. 10-year Treasury yields eased after having hit their highest level since January 2025. The market is now watching the Fed’s latest assessment of inflation and growth prospects.

The crypto market was relatively steady throughout July, but spot ETF inflows weakened in the latter part of last week. On July 24, U.S.-listed spot Bitcoin and Ethereum ETF products combined for net outflows of about $311 million, renewing attention on whether institutional capital will continue to provide support.

Meanwhile, the options market indicates that near-term sentiment is becoming more cautious, with demand for downside protection picking up. Although positive funding rates and higher Ethereum volatility suggest that market positioning remains somewhat constructive, hedging demand increased at the same time. Overall, the outcome of the Fed meeting this week may continue to drive the sensitivity of digital assets to interest rates and risk appetite.