**The crypto market is on the rise again, and stock market volatility has triggered new trends in capital flows**
BlockBeats news, on October 8, QCP Capital's latest analysis pointed out that the Chinese stock market failed to continue its rebound momentum after the long holiday. As a result, the MSCI Asia Pacific Stock Index recorded the largest single-day drop in nearly a month. As for the US stock market, it also showed a downward trend in overnight trading, mainly affected by the weakening of large technology stocks and rising geopolitical risks. The fear index VIX rose to 22 points.
Interestingly, the volatility of the cryptocurrency market has remained relatively stable. The recent implied volatility is 43%, which is 3 percentage points lower than the 7-day historical actual volatility. Bloomberg previously reported that since the end of September, Chinese investors may have funded stock investments by selling USDT, while the price of Bitcoin remained relatively stable during the same period. As the momentum of the Chinese stock market rebound weakens, analysts expect funds to flow back to the cryptocurrency market. This trend reflects the increasingly consolidated market position of crypto assets as alternative risk assets.
QCP analysis believes that given the upcoming earnings season and the release of inflation data, the stock market may face downward pressure in the short term, which may pose a challenge to the current high valuation. At the same time, ongoing geopolitical tensions have further increased market uncertainty. Despite this, QCP remains cautiously optimistic about the medium-term market and expects news related to the US election to continue to be an important factor driving the cryptocurrency market. For example, Tesla CEO Elon Musk recently commented on the prediction market Polymarket that the platform predicted that Trump's lead over Harris was more accurate than traditional polls.
For investors, this is undoubtedly a moment worth paying attention to. The interactive relationship between the stock market and the crypto market is becoming more and more complex and interesting. Do you also think that the cryptocurrency market will become a safe haven for funds? Welcome to share your views and predictions in the comment area! 😊
In general, market volatility and uncertainty, while nerve-wracking, also provide investors with new opportunities and challenges. Whether you are a veteran of the stock market or a novice in cryptocurrency, this is a moment worth in-depth research and discussion. Looking forward to your wonderful comments and insights!
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I hope this newsletter provides you with some interesting market insights. If you have any questions or thoughts, don’t forget to share with us in the comments section!
