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QCP Capital: The crypto market faces potential impacts from stock market volatility and risks related to the U.S. election, and recommends a defensiv

QCP Capital: The crypto market faces potential impacts from stock market volatility and risks related to the U.S. election, and recommends a defensiv

CointimeCointime2024/08/20 10:42
By:Cointime

According to an article by Singaporean cryptocurrency investment firm QCP Capital, the driving force behind the stock market rebound is reportedly momentum traders and trend followers reutilizing leverage, and this phenomenon is amplified by the lower liquidity in August. In addition, this year, corporate stock buybacks have surged to $1.15 trillion, and Goldman Sachs' trading department has witnessed record demand from clients to buy when stock prices fall. The potential impact on the cryptocurrency market includes: 1. The risk appetite sentiment may spread to the cryptocurrency and gold markets, and given the strong demand for call options, Bitcoin may further rise. 2. The US election is still a focus of attention, and Bitcoin's skew shows that bearish options are more popular before the election, with a volatility difference of up to 6 percentage points between the expiration dates before and after the election. The Democratic Party's platform lacks support for cryptocurrencies, while the Republican Party promises to end "illegal and un-American suppression of cryptocurrencies". Given the potential market volatility and election-related risks, it is recommended to adopt defensive, high-yield, and limited downside risk strategies in the third quarter.

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