US Markets Remain Strong
Despite the negative developments in Asia, US stocks are not affected. Despite the upcoming election uncertainty and the recent Employment Report, US stocks are heading towards new highs, despite the decline in expectations for a rate cut for 2024. In the bond market, the number of rate cuts expected for 2024 has decreased from three a week ago to two.
Despite the rising geopolitical risks in the Middle East and the election-related difficulties within the US, the continued rise in US stock markets suggests that risk assets are poised for a strong rally.
Memecoin Volatility in the Crypto Market
Memecoins are showing a significant rise in the cryptocurrency market. With the increase in trading volume in both on-chain and off-chain transactions, traders are investing heavily in new “hippopotamus” or “cat” themed memecoins. This overbought situation indicates that there is a bubble in the market, and risky positions are taken with high leverage.
The increase in perpetual (perp) funding rates on exchanges, especially Deribit and Binance, indicates a decrease in bearish positions or an increase in long positions. However, QCP Asia warns that the “bubble” in the memecoin market can be misleading, emphasizing that the risk of the market falling unexpectedly is high.
Long Term Savings Strategy
QCP Asia believes that the market will continue to rise in the long term despite short-term uncertainties. Therefore, they continue to buy on dips. In particular, they prefer the Accumulator strategy, which offers the opportunity to accumulate assets at discounted prices during short-term declines in risky situations such as US election uncertainties.
As a result, despite the positive outlook for the US markets in the medium term and the short-term risks in the crypto market, it is emphasized that strategic purchases should continue.
