Amidst the backdrop of the Federal Reserve's interest rate cut, the bugle for a new round of the "liquidity grab" has sounded. Recently, the A-shares and Hong Kong stocks have performed exceptionally well, attracting a global influx of capital. In the past few days, dollar-denominated assets represented by Bitcoin and the NASDAQ have maintained a strong upward momentum. Bitcoin has continued to rise this week and has now reached the $67,000 mark, while the NASDAQ index also set a three-month high this Monday (October 14th).
Jeffrey Ding, Chief Analyst at Hashkey Group, stated that Bitcoin will once again move towards the resistance levels of $70,000 to $72,000, and breaking through the previous historical high is essentially inevitable. After that, a new upward channel will open.
At the same time, looking globally, the current situation in Northeast Asia continues to be tense, leading to a cautious investment attitude of international funds towards Asian markets, with a noticeable slowdown in the "eastward flow." The new government's foreign policy orientation—whether it's the attitude towards the Russia-Ukraine conflict or the response to the situation in the Middle East—could trigger a chain reaction. These changes in geopolitical factors will affect global risk aversion and capital flows, causing financial markets to face significant adjustments for a period.
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In addition, the cryptocurrency market is showing several signals worth paying attention to. First is the breakthrough in the stock price of MicroStrategy (MSTR). As the largest publicly traded company holder of Bitcoin, 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. The MSTR stock price has risen by about 50% in the past month, which can be seen as a reflection of institutional investors' optimistic attitude towards cryptographic assets.
Secondly, Bitcoin has completed the necessary consolidation. Over the past six months or so, Bitcoin has undergone a long period of horizontal consolidation, during which it successfully digested selling pressure from countries such as Germany and the United States. These pressures mainly came from Bitcoin spot ETFs approved by regulatory agencies and various institutional liquidations. After the market fully digested these sell-offs, the time for Bitcoin's change has matured.
Lastly, Ethereum currently shows good investment value. In the market adjustment over the past six months, Ethereum has experienced a larger decline relative to Bitcoin, creating a significant price gap. According to historical experience, this gap is often corrected in subsequent market trends, which also makes Ethereum highly attractive to funds at the current price.
Under the influence of multiple factors such as the Federal Reserve's interest rate cut expectations, cryptographic assets are welcoming a new round of upward opportunities. However, we still need to be vigilant about market fluctuations brought by geopolitical changes, manage risks while seizing opportunities, and closely monitor policy trends and market signals.