QCP: April has historically been a strong-performing period for risk assets, with inflation data set to be a key catalyst

BlockBeats News, March 25th, QCP released its daily market observation, stating that JPMorgan and an increasing number of strategists have been telling their clients that the recent downturn in US stocks is likely behind us, driven by improved market sentiment and historic seasonal support. The second quarter, especially April, has historically been one of the best-performing periods for risk assets, second only to the festive December rally. The S&P 500 Index has seen an average annualized return of 19.6% in the second quarter, with Bitcoin also posting its second-best median performance during this period, second only to the fourth quarter.

President Trump mentioned twice on Monday that trade partners may receive tariff exemptions or reductions, helping to ease market tensions. BTC briefly surpassed $88,000, with other cryptocurrencies outperforming BTC. However, the options market remains cautious and has not significantly shifted to a bullish stance, indicating that traders are waiting for further developments on the tariff situation.

This Friday marks options expiration day for the quarter, with the highest open interest at strike prices above $100,000. QCP expects that the major volatility will not be solely driven by options positions. Market attention will turn to personal consumption expenditure inflation data, which could be the next key catalyst, with expectations of increased volatility in the US stock market.