QCP Capital: we tend to establish long term long positions as the phase of sharp market volatility comes to an end

Monday's market turmoil may have seemed like a nightmare for many as assets have mostly recovered from a massive sell-off, according to a post from Singapore-based crypto investor QCP Capital.The VIX index traded over 65%... Traditional financial markets are finally experiencing the daily volatility of cryptocurrency markets. While the initial shock may have passed, we foresee continued selling pressure on the markets in the coming days as systematic funds continue to reduce exposure amidst increased volatility. We recommend keeping a close eye on the Nasdaq, Nikkei, and USD/JPY rates as cross-asset correlations remain high in the near term. We do not believe the Fed will take an emergency rate cut in September or cut rates on the sidelines of the October meeting, as this would exacerbate market fears. As the phase of sharp market volatility comes to an end, we are inclined to establish long-term long positions in anticipation of a rate-cutting cycle. Considering the high volatility, we prefer trades with 3-6 months timeframe to avoid being affected by market volatility.