According to ChainCatcher news, QCP Capital stated that the Chinese stock market continued to decline today, with the China A50 index falling another 7%, a 17% drop from its recent high. The lack of fiscal stimulus measures has severely dampened investor sentiment. However, the US stock market has not been affected by the developments in the Asian situation. Despite the uncertainty surrounding the US election and the exclusion of rate cut expectations for 2024 after the non-farm employment report, the US stock market continues to rise to new highs. The bond market currently expects two rate cuts in 2024, whereas just a week ago, it was expected to have three rate cuts.
Despite the turmoil in the Middle East and the growing domestic challenges related to the US election, the US stock market has continued to steadily rise, further reinforcing the view that risk assets are about to rebound. In the cryptocurrency market, the MEME coin market has been soaring with the increase in on-chain and off-chain trading activities. Traders have been heavily speculating and leveraging the latest popular MEME coins, leading to some bubbles in the market.
Over the past two weeks, the perpetual contract funding rates on exchanges like Deribit and Binance have also risen, indicating that short positions are being reduced or long positions are increasing. Together with the bubble in the MEME coin market, this makes it cautious about the potential for a downward trend, as this often occurs when the market is bullish and investors are most vulnerable. Even in the face of short-term uncertainty and declines, we still plan to continue accumulating, with a bullish medium-term outlook.
