According to BlockBeats, on May 14, QCP released a daily market observation stating that U.S.-Saudi trade has driven the market rebound. The U.S. and Saudi Arabia signed a landmark $600 billion trade agreement, leading to tariff reductions and triggering a new wave of risk appetite.
The U.S. CPI was lower than expected, easing market concerns about inflation and boosting bets on interest rate cuts. However, the Federal Reserve remains cautious. The market currently expects the first rate cut in July, but we believe a more realistic timeframe might be September, with two rate cuts expected in 2025, down from a month ago’s expectation of four cuts.
In this round of rebound, the crypto market has outperformed the stock market, with Bitcoin prices approaching historical highs. Ethereum is struggling to catch up, and the ETH/BTC exchange rate is currently 0.025. We believe that digital assets still have further upside potential, especially in the context of Coinbase officially joining the S&P 500 index on May 19. Historical experience shows that index inclusion usually brings short-term catalytic effects, as passive funds need to adjust their allocations to be more aligned with the benchmark index.
