PANews October 8 news, Singapore crypto investment institution QCP Capital issued a statement saying that the rally in China's stock market after a week-long holiday failed to continue because the government briefing did not introduce new economic stimulus measures. The MSCI Asia Pacific stock index recorded its biggest drop in a month. Affected by super-large technology stocks and escalating geopolitical tensions, US stocks also fell overnight, and the volatility index (VIX) rose to 22 points. Interestingly, cryptocurrency volatility remained stable, with the front-end implied volatility trading at around 43%, 3 percentage points lower than the 7-day historical actual volatility. Bloomberg previously reported that Chinese investors may have sold USDT to finance stock purchases since the end of September, while Bitcoin remained stable. As the rally in China's stock market fades, funds are expected to be reallocated back to cryptocurrencies, reflecting the growing maturity of cryptocurrencies as alternative risk assets. Given the upcoming earnings season and the release of the consumer price index (CPI), it is foreseen that there are downside risks in the stock market in the short term, which may pose a challenge to its high valuation. Geopolitical tensions further complicate the market outlook. However, QCP maintains a medium-term bullish stance and expects election-related news to continue to drive cryptocurrencies.
