Market Insights
Article by Elisha
The macro space continues to look more and more bullish for risk assets, including crypto.
Yesterday, the PBoC introduced a slew of policies aimed at kickstarting their sputtering housing market and anemic equity market. It has apparently worked (for now) as Chinese A50 futures closed 8% higher, with Chinese and Hong Kong indices following suit.
The PBoC also announced an unprecedented 500bn RMB swap facility that allows non-bank financial institutions to buy Chinese shares. This facility was previously only available to national banks.
We believe more easing is coming from the PBoC, and they have communicated as much. Combined with the Fed joining the global cutting cycle, all major central banks (except BoJ) are now ready to inject more liquidity into the market.
We have seen the 2s10s spread (the yield spread between the 2-year and 10-year U.S. Treasury notes) continue to widen over the past month, moving 40bps higher and now trading at 21bps. A widening spread generally suggests optimism about economic growth, which is supportive of risk assets in the medium to long term.
On the U.S. political front, Kamala Harris spoke positively about AI and digital assets at her fundraiser. We saw a rally in AI-related coins following her speech. The SEC approving options trading on IBIT (BlackRock’s Spot BTC ETF) also shows the growing acceptance and demand for digital assets as an asset class.
“The most successful traders are those who can see the confluence of external factors before they fully impact the market.” – George Soros
While there is currently a lack of idiosyncratic crypto factors driving prices, the stars are aligning in the macro environment, which could drive crypto prices higher. We know how explosive crypto prices can be, and with so many bullish catalysts, we think the next move higher will leave many people surprised and sidelined.
BTC Win-Range (Top Side)
BTC 27-Dec Seagull
Yesterday’s Fed meeting minutes revealed a less dovish tone, bringing the Fed’s implied victory over inflation under question. Combined with last Friday’s strong payroll data,
Chinese stocks continue to move lower today after yesterday’s disappointing press conference from state planners. The China A50 Index is down another 7% today and
QCP adopts USYC as collateral across its investment strategies, enhancing flexibility and security for clients. Singapore, 9 October 2024 – QCP, a leading wealth partner
The rally in Chinese stocks fizzled following their week-long holiday as a government briefing failed to introduce new economic stimulus. The MSCI APAC equity index
After a shaky start, Uptober seems to be back on track. BTC is as at similar levels to where it started last Monday. The Uptober
The new quarter kickstarted with some volatility in risk assets due to the escalation of the Israeli-Iranian conflict. Given the timing (one-year anniversary since the
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