QCP Capital: The Macro Environment Remains Favorable for Further Institutional Participation and Capital Allocation in Digital Assets

QCP Capital’s official channel stated that the market has welcomed the tentative progress in US-China relations. President Trump announced a partial rollback of the proposed tariff increases, with the agreement now in its final stages and awaiting formal approval. However, optimism remains subdued. The US Secretary of Commerce has taken a tough stance on technology exports, making it clear that the US “will not provide China with the most advanced chips.” This highlights the trend of global supply chain fragmentation, and the market is increasingly factoring this into the pricing dynamics of cross-border trade.

Geopolitical tensions are rising again. As nuclear negotiations stall, the US has begun withdrawing diplomatic personnel from the Middle East. Reports indicate that Washington has received warnings that Israel may launch strikes on Iranian nuclear facilities, triggering a sharp reaction in the oil market. Brent crude surged 7%-9% intraday, and as investors shifted toward defensive assets, risk assets were sold off.

In addition, speculation that Bessent might replace Jerome Powell as Federal Reserve Chair has intensified, but was quickly downplayed. Bessent publicly reiterated his commitment to serve at the Treasury until 2029. Meanwhile, after US CPI data came in below expectations, President Trump again pressured the Fed to “cut rates by a full 100 basis points,” citing the unsustainable burden of high debt servicing costs. QCP Capital believes that despite a minor pullback, the macro environment remains favorable for further institutional participation in digital assets and capital allocation.