Against the backdrop of the Federal Reserve's interest rate cuts, the bugle of a new round of "liquidity scramble" has already been sounded. In the recent period, the performance of the A-share and Hong Kong stock markets has been very bright, attracting global capital to pour in. And in the past two days, the dollar-denominated assets represented by Bitcoin and Nasdaq have continued to show a strong upward trend, with Bitcoin continuing to rise during the week, currently reaching the $67,000 mark, while the Nasdaq index also hit a new high in three months on Monday (October 14).
Hashkey Group's chief analyst Jeffrey Ding said that Bitcoin will once again move towards the pressure level of $70,000 to $72,000, and it is basically inevitable to break through the previous historical high, after which it will open a new upward channel.
Jeffrey Ding pointed out that the current timing of the market's rise is quite meaningful, which may be related to the upcoming US election. As November 4th election day approaches, the stability of the financial market is particularly important - before the election, the stability and prosperity of the market play a key role in the Democratic Party's election prospects, so maintaining a stable market operation becomes a top priority; after the election, regardless of who takes office in the White House, stabilizing and stimulating the financial market will become an important agenda for their governance.
At the same time, looking at the global situation, the current Northeast Asian regional situation remains tense, causing international capital to take a cautious attitude towards investment in the Asian market, and the "eastward flow" pace has slowed down significantly. Against this backdrop, the outcome of the US election will reshape the international geopolitical landscape. The foreign policy orientation of the new government - whether it is the attitude towards the Russia-Ukraine conflict or the response to the situation in the Middle East - may trigger a chain reaction. Changes in these geopolitical factors will affect global risk aversion sentiment and capital flows, causing the financial market to face significant adjustments in the period after the election.
In addition, the cryptocurrency market is showing several signals worth noting. First, the breakthrough in the stock price of MicroStrategy (MSTR). As the largest publicly traded Bitcoin holder, the value of MicroStrategy's stock not only reflects the company's own valuation, but also represents the US stock market's expectations for the future price of Bitcoin. MSTR's stock price has risen by about 50% in the past month, which can be seen as a reflection of institutional investors' optimistic attitude towards crypto assets.
Secondly, Bitcoin has completed the necessary consolidation. In the past more than half a year, Bitcoin has experienced a long period of sideways consolidation, during which it successfully digested the selling pressure from countries such as Germany and the US. This selling pressure mainly came from the approval of Bitcoin spot ETFs by regulatory authorities and various institutional liquidations. After the market has fully digested these sell-offs, the timing for Bitcoin's turnaround has become ripe.
Finally, Ethereum is currently showing good investment value. In the market adjustment over the past half year, Ethereum has seen a greater decline relative to Bitcoin, creating a significant price gap. Based on historical experience, this gap is often repaired in the subsequent market trend, which also makes Ethereum quite attractive to capital at the current price level.
Under the influence of factors such as the Federal Reserve's interest rate cut expectations and the US election, crypto assets are ushering in a new round of upward opportunities. However, we still need to be vigilant about the market volatility caused by geopolitical changes, and while grasping the opportunities, we should also do a good job in risk management, closely monitor policy trends and market signals.
