Cryptocurrency analysis firm QCP Capital has reported that both equities and Bitcoin have defied their typical September downturn, delivering stronger-than-expected performances in the third quarter.
QCP Capital Believes Bitcoin Had One of the Best Septembers in Its History
The S&P 500 index has gained 5.1% for the quarter, marking its best year-to-date performance since 1997. Meanwhile, Bitcoin has surged over 7% this month, putting it on course for one of its strongest September performances on record.
The global risk-on sentiment remains buoyant as we enter October, with China’s CSI 300 Index jumping by 9% today following the introduction of its largest property support package in years. Goldman Sachs’ prime brokerage desk has revealed that hedge funds are significantly more bullish on rising IT stocks than falling ones.
While the equity-led rally is impressive, QCP Capital warns that it could be tested when Q3 earnings reports start rolling out in mid-October. As traders reassess current valuations, a potential equity retracement could benefit Bitcoin, given its nature as a risk-on asset in a globally easing monetary environment.
