On September 25, QCP released a daily report saying that the macroeconomic level continues to be more favorable for risk assets, including cryptocurrencies. Yesterday, the People's Bank of China launched a series of policies aimed at reviving the sluggish real estate market and the depressed stock market. China A50 futures closed up 8%, and an unprecedented RMB 500 billion swap facility was announced to allow non-bank financial institutions to buy Chinese stocks. QCP believes that the People's Bank of China will continue to introduce more easing policies, and with the Federal Reserve also joining the global interest rate cut cycle, all major central banks except the Bank of Japan (BoJ) are now ready to inject more liquidity into the market.
It is observed that the spread between the US 2-year and 10-year Treasury yields (2s10s spread) continued to widen in the past month, increasing by 40 basis points and currently at 21 basis points. Widening spreads usually mean optimism about economic growth, which is good for risky assets in the medium and long term. In US politics, Harris actively talked about artificial intelligence and digital assets at her fundraising event. AI-related tokens rose after her speech. In addition, the US SEC approved IBIT Bitcoin ETF option trading, further indicating that the acceptance and demand for digital assets as an asset class is growing.
Despite the lack of cryptocurrency-specific factors driving price increases, multiple factors in the macro environment are gradually converging and may push cryptocurrency prices further higher. We all know the explosive power of cryptocurrency prices, and with so many bullish catalysts today, thinking that the next wave of increases will catch many people off guard and even miss the opportunity.
