As the momentum of China's stock market rebound weakens, analysts expect funds to flow back into 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. Data shows that the market expects the upcoming inflation data to increase by 1.8% year-on-year, and the uncertainty of corporate earnings reports may also cause stock market volatility.
Continued 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's recent comments on the prediction market Polymarket that the platform predicted that Trump's lead over Harris was more accurate than traditional polls has attracted widespread attention in the market.
