Against the backdrop of the Fed’s rate cut, the horn of a new round of “liquidity battle” has been sounded. Some time ago, A-shares and Hong Kong stocks performed very well, attracting global capital inflows. In the past two days, dollar-denominated assets represented by Bitcoin and Nasdaq have continued to rise strongly. Bitcoin continued to rise during the week and has now reached the $67,000 mark, while the Nasdaq index also hit a three-month high on Monday (October 14).
Jeffrey Ding, chief analyst at Hashkey Group, said that Bitcoin will once again move towards the pressure level of $70,000 to $72,000. It is basically imperative to break through the previous historical high, after which a new upward channel will be opened.
Jeffrey Ding pointed out that the timing of the current market rise is quite meaningful and may be related to the upcoming US election. As the November 4 election day approaches, the stability of the financial market is particularly important - before the election, the stability and prosperity of the market plays a key role in the Democratic Party's election situation, so maintaining the smooth operation of the market has become a top priority; after the election, no matter who enters the White House, stabilizing and stimulating the financial market will become an important agenda for their administration.
At the same time, looking at the world, the current situation in Northeast Asia remains tense, causing international funds to be cautious about investing in the Asian market, and the pace of "flowing eastward" has slowed down significantly. Against this background, the results of the US election will reshape the international geopolitical landscape. The new government's foreign policy orientation - whether it is its attitude towards the Russia-Ukraine conflict or its response to the situation in the Middle East, may trigger a chain reaction. Changes in these geopolitical factors will affect global risk aversion and capital flows, causing financial markets to face major adjustments in the period after the election.
In addition, the cryptocurrency market is showing several signals worthy of attention. The first is the breakthrough of MicroStrategy (MSTR) MicroStrategy's stock price. As the largest listed Bitcoin holder, MicroStrategy's stock value not only reflects the company's own valuation, but also represents the US stock market's expectations for the future price of Bitcoin. The MSTR stock price has risen by about 50% in the past month, which can be seen as a reflection of institutional investors' optimism about crypto assets.
Secondly, Bitcoin has completed the necessary consolidation. Over the past six months or so, Bitcoin has experienced a long period of sideways consolidation, during which it successfully digested the selling pressure from countries such as Germany and the United States. These selling pressures mainly come from Bitcoin spot ETFs approved by regulators and various institutional liquidations. After the market fully digested these selling orders, the time for Bitcoin to change is ripe.
Finally, Ethereum currently shows good investment value. During the market correction in the past six months, Ethereum has experienced a larger decline relative to Bitcoin, creating a significant price gap. According to historical experience, this gap will often be repaired in the subsequent market, which also makes Ethereum highly attractive to funds at the current price.
Under the influence of multiple factors such as the Fed's interest rate cut expectations and the US election, crypto assets are ushering in a new round of rising opportunities. However, we still need to be vigilant about market fluctuations caused by geopolitical changes, do a good job of risk management while seizing opportunities, and pay close attention to policy trends and market signals.
