As the Federal Reserve took the lead in cutting interest rates, the global market has long since started a "flooding tide". A-shares have also started a new round of "recovering lost ground" under the stimulation of a number of favorable policies of the central bank. On September 30, the turnover of the two A-share markets exceeded 250 trillion yuan, setting a new record; previously, it took only 35 minutes for the turnover to exceed one trillion, setting a new "fastest trillion record in history". The crazy market is attracting more and more investors to join, and many cryptocurrency practitioners have claimed that "large amounts of money have been withdrawn, and the target is directly aimed at the daily limit of A-shares". On the other hand, the relationship between cryptocurrency and US stocks is also increasing day by day. According to IntoTheBlock data, the correlation between BTC and the US stock market has reached the highest level since Q2 2022. After the Bitcoin spot ETF and Ethereum spot ETF were passed one after another, the above situation is also a side microcosm of the further deepening of the coupling between the traditional financial market and the cryptocurrency industry.
After the Bitcoin spot ETF was approved, the safe-haven asset attribute of Bitcoin has weakened to a certain extent compared with gold, and its price trend is more affected by the Dow Jones Industrial Average. However, at the same time, Bitcoin spot is more sensitive to macroeconomic situations and geopolitical factors due to its 7*24-hour trading flexibility, and its volatility is much greater than that of the US stock and A-share markets. The volatility range of A-shares represented by the Shanghai Composite Index has long been maintained at around 2,800-3,100 points. In comparison, the Dow Jones's rise is more obvious, from 37,000 points at the beginning of the year to around 42,600 points recently, an increase of about 15%; the price of Bitcoin has risen from US$42,000 at the beginning of the year to around US$64,000 now, an increase of about 52%, which can be called "the annual high-quality investment target."
In the long run, although the current size of the cryptocurrency market (according to Coingecko data, the current total volume is 2.36 trillion US dollars) is far less than the trillions or even trillions of trading volumes of A-shares and US stocks, there may still be a possibility of "two-way bloodsucking" to a certain extent. Channels such as Hong Kong virtual currency ETF funds and US ETF funds have opened the entrance for capital inflows into traditional financial markets, but at the same time may also lead to further reflux of the already scarce liquidity of cryptocurrencies.
