QCP: US Midterm Elections Expectations Boost US Stocks and Crypto Assets, Pullbacks Still a Buying Opportunity

On January 14, QCP published a daily market analysis stating, “The US employment performance remains solid, and inflation stays stable. Risk appetite has fully returned, with risk assets generally strengthening across stocks, precious metals, the US dollar, and cryptocurrencies. Despite ongoing news regarding Venezuela, Iran, and US intervention, the overall market remains calm. Crude oil has gained some premium due to geopolitical risks, but the overall market trend remains resilient. More realistically, investors are interpreting the current situation from the perspective of the US midterm elections: the market expects Trump to strive to boost market performance by relying on liquidity and a more assertive US stance, supporting US assets to outperform and creating a global ‘risk-on’ market atmosphere. Bitcoin, after multiple failed attempts to break higher, finally surpassed $95,000. If precious metals continue to benefit from currency devaluation trades, Bitcoin’s relative value advantage may once again attract funds back into digital assets. Of course, key risks still exist, including the upcoming tariff ruling by the US Supreme Court and potential escalation of the Venezuela or Iran situations. But for now, price movements indicate that much risk has already been priced in by the market. In the absence of truly disruptive events, pullbacks remain buying opportunities.”