Bitcoin has recovered from a weekend drop, holding near $110K. This strength is backed by 30 straight days of net inflows into spot ETFs like BlackRock’s IBIT. According to QCP, this shows strong institutional interest and growing confidence in crypto as a long-term asset.
On the other hand, tech stocks, especially leveraged plays like the TQQQ, are seeing major outflows. Since April, they’ve been hit by fading hopes of Fed rate cuts and concerns over rising inflation. Investors are turning more cautious.
As traders brace for this Friday’s critical Core PCE inflation data, QCP outlines the key forces driving a growing divergence between crypto and tech markets.
QCP says some investors are shifting away from pricey tech stocks and rotating into crypto. The maturity of the crypto market is also playing a role. With more sophisticated hedging options and less reliance on leverage, crypto is better equipped to handle macro shocks than in previous cycles.
Plus, political events like Trump’s sudden EU tariff threats are adding stress to equity markets. Crypto, being less tied to government policy and physical supply chains, is staying out of that storm.
This Friday’s Core PCE data could be a game-changer. If inflation is higher than expected, it could delay any Fed easing and hurt tech even more. Meanwhile, shipping delays in Europe are pushing up costs globally. That could squeeze tech firms further, while crypto, being digital and decentralized, remains unaffected.
QCP believes that if inflation sticks around, crypto may even gain as a hedge.
Institutional inflows into ETFs like BlackRock’s IBIT and growing inflation fears are fueling Bitcoin’s rally.
High inflation hurts tech more, while crypto can benefit as a hedge due to its decentralized and digital nature.
Tech is hit by inflation and rate fears; crypto offers growth, hedging, and less exposure to policy risks.
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