QCP Capital: Middle East geopolitics should not distract investors, and the market's willingness to buy risky assets remains strong

PANews reported on October 2 that QCP Capital posted on its official channel that despite the escalation of the conflict between Israel and Iran, the market is less risky for traditional financial assets. This week, Israel launched a ground offensive against Lebanon, and Iran fired back with more than 180 missiles. Despite this, the SP index fell only 1%, and WTI oil prices rose 2%, with limited overall volatility. However, the crypto market was hit harder, with BTC falling 4% and currently finding support around $60,000, but further deterioration could cause BTC to fall to $55,000.

QCP Capital believes that the impact of the situation in the Middle East is short-term and the market's willingness to buy risky assets remains strong. At the same time, China's economic measures are similar to those of Japan in the 1990s, and it is expected that the liquidity support of the People's Bank of China will drive up Chinese asset prices and drive global bullish sentiment, which is good for risky assets including cryptocurrencies. Federal Reserve Chairman Powell also supported further interest rate cuts in 2024 in his recent statement, and it is expected that this interest rate cut cycle will continue to support asset prices until 2025.