QCP: The Foundation for Bitcoin's New Round of Rebound Appears to Have Been Established

BlockBeats News, October 15th, QCP released a daily commentary stating: After a volatile weekend, risk assets have stabilized: stocks are about 1.5% below recent highs, and Bitcoin is about 10% below its peak. This rebound is partially driven by the market's rekindled expectation of rate cuts, with futures contracts currently pricing in a cumulative rate cut of about 125 basis points 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 has led to a delay in key labor data releases.
Gold continues to be in focus, surging to a historic high of $4,022 per ounce (a 52% increase year-to-date), backed by strong central bank accumulation and declining real yields.

The market narrative is shifting from rate sensitivity to liquidity-driven. Central bank purchases, de-dollarization flows, and institutional portfolio hedging have become the primary forces driving the rise in gold, giving it a value far beyond its traditional inflation hedge function.

Despite the volatile weekend market movements, the correlation between Bitcoin and gold has exceeded 0.85, indicating a high degree of synchronization in the flows of funds between traditional and digital store of value tools. While gold continues to hit new highs, Bitcoin also briefly reached a new high before the weekend. With institutional treasuries continuing to increase their positions and ETF inflows 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 seems to have been established.