QCP Capital: As the current market volatility continues to decrease, companies may choose to hold Bitcoin reserves to provide the market with new structural buying pressure.
BlockBeats News, May 28th. QCP Capital posted on its official channel, stating that the volatility of most asset classes continues to decline. Due to a lack of meaningful news flow and macroeconomic data, the market has entered a period of calm. Although the news is ongoing, the market seems increasingly numb to negative news, with headlines that could have previously triggered strong reactions now being casually overlooked.
The U.S. Treasury yields have retraced slightly after last week's fiscal turmoil caused by the so-called "grand and beautiful bill." However, the debt-to-GDP ratio still remains above 120%, with the new bill expected to add another $3.8 trillion to the national debt. The 10-year and 30-year U.S. Treasury yields have dropped below 4.5% and 5.0%, respectively, while Japan's 30-year government bond yield has also fallen below 3%. These levels are still relatively high historically, but short-term risks have eased.
Market attention has shifted to the upcoming U.S. Treasury auctions of 10-year, 20-year, and 30-year bonds in June. Meanwhile, the Japanese Ministry of Finance will issue 40-year government bonds today, with plans to issue 30-year bonds next week. The Ministry of Finance seems aware of the market's aversion to long-term bonds and appears ready to adjust its issuance strategy to suppress volatility in the long end of the yield curve.
Ironically, the market is currently in a "just right" range: the latest data has been largely unaffected by last month's tariff policy. Both businesses and consumers need time to adjust pricing and spending patterns, and these changes may not be reflected in the data until the third quarter. The Fed also seems to agree with this view, choosing to overlook recent data unless the economy deteriorates sharply.
Senator Lummis' widespread remarks on stablecoins and Bitcoin strategic reserves have reignited hopes for substantive progress in cryptocurrency policy. Since the inauguration of this administration, progress on digital asset plans has been lukewarm, but this meeting may provide the necessary impetus for restarting White House engagement. Additionally, the Trump Media plan aims to raise $25 billion to join the ranks of companies establishing Bitcoin reserves. If the meeting gains momentum, we may see more companies following the lead of Strategy and Metaplanet, providing new structural buying pressure to the market.
