Cryptocurrency analysis firm QCP Capital has evaluated the recent rally in global markets, driven primarily by China’s aggressive stimulus measures.
In a statement, QCP Capital noted that the 4.15% surge in the Shanghai Composite Index (SSE) was a direct result of the People’s Bank of China’s (PBoC) significant policy easing. The 50 basis point cut in Reserve Requirement Ratios (RRR) and the 500 billion yuan funding program for stock market investment have ignited optimism across global markets.
Commodity prices have also responded positively to the stimulus, with Brent Crude and Copper both experiencing notable gains. This reflects increased demand expectations as investors anticipate improved Chinese consumption.
QCP Capital further highlighted the impact of the Federal Reserve’s 50 basis point rate cut, which has reinforced the global easing trend. This positive environment is expected to provide strong support to asset prices in the near term.
Turning to the cryptocurrency market, QCP Capital observed a more pronounced rally in Ethereum (ETH) compared to Bitcoin (BTC). The ETH/BTC cross has risen from 0.038 on Friday to 0.0415 today, suggesting renewed confidence in Ethereum. However, the firm cautioned that this could also be attributed to higher beta from impaired liquidity.
In terms of options markets, QCP Capital noted a shift in skew for Ethereum options from puts to calls, indicating increased upside sentiment. Additionally, Ethereum implied volatility is trading 9% higher than Bitcoin, suggesting higher expected volatility.
