BlockBeats News, October 15th, QCP released a daily viewpoint stating: After a volatile weekend, risk assets have stabilized: stocks are about 1.5% away from recent highs, Bitcoin is about 10% away from its peak. This rebound is partly driven by the market’s expectations of interest rate cuts, with futures contracts currently pricing in a cumulative 125 basis point cut by the end of 2026.
Federal Reserve Chairman Powell reiterated the plan to cut rates by another 0.25% this month, providing short-term support for risk sentiment, even as a government shutdown delayed key labor data releases.
Gold continues to be in focus, surging to a historic high of $4,022 per ounce (up 52% year-to-date), driven by strong central bank reserves accumulation and declining real yields.
The market narrative is shifting from interest rate sensitivity to liquidity-driven. Central bank purchases, de-dollarization flows, and institutional portfolio hedging have become the main drivers of gold’s rise, positioning it far beyond its traditional function as an inflation hedge.
Despite the weekend’s market volatility, the correlation between Bitcoin and gold has exceeded 0.85, showing a high degree of synchronization in the flow of funds between traditional and digital store-of-value tools. As gold continues to hit new highs, Bitcoin briefly touched a new high before the weekend. With institutional treasuries continuing to increase their positions and ETF flows remaining strong (yesterday BTC ETF inflows of $102.7 million, ETH ETF inflows of $236.2 million), the foundation for a new round of rebound appears to have been established.
