According to a recent report by QCP Capital, the equal-weighted S&P 500 index has reached a record high, signaling that the bull market momentum is expanding beyond the "seven major technology giants" to include the broader market. The report emphasizes that historically, small-cap stocks have outperformed large-cap stocks during the last three interest rate cut cycles. Given the increasing correlation between cryptocurrencies and small-cap stocks, Bitcoin may outperform other risky assets in the upcoming round of interest rate cuts.
In the cryptocurrency market, Bitcoin spot ETFs have experienced 12 consecutive days of inflows, while Ethereum spot ETFs have seen outflows for eight straight days. Bitcoin's dominance in the options market underscores the macroeconomic influence of the current rate-cut cycle. QCP Capital has observed moderate bullish call spread buying on the options desk, coupled with recent declines in volatility and cautious optimism in the market.
QCP Capital suggests accumulating Bitcoin at an 8.27% discount (around $57,600) weekly for the remainder of the third quarter, as long as the spot price remains below $67,000. The firm does not anticipate significant market volatility this week, as investors are likely to await clear signals on the extent of the September rate cut.
