While risk appetite is gaining strength again in global markets, investors are facing an upward trend in a wide range of stocks, from stocks to precious metals and cryptocurrencies. The fact that the employment market in the USA remained resilient and inflation showed signs of stabilization reinforced the “moderate growth” environment expected at the beginning of the year. Despite the intensity of geopolitical headlines, there is no panic in pricing, which shows that capital is again seeking returns. Analyzes that keep their finger on the pulse of the market emphasize that this trend points to a broader risk-on cycle rather than a short-term bounce.
Global Risk Appetite and Political Dynamics
In its latest market assessment, QCP Capital pointed out that data supporting the soft landing scenario of the US economy feeds investor confidence. The fact that there was no significant dissolution in the labor market and price increases remained under control made the simultaneous rise in stocks and precious metals possible. Despite the relatively strong course of the dollar, the increased interest in risky assets revealed that global fund flows are focusing on US-centered growth expectations again.
On the geopolitical front, the developments around Venezuela and Iran do not seem to disrupt the general market atmosphere while adding a premium to oil prices. According to the analysis, investors are driven by the perception that Washington is re-strengthening its global leadership role. US President Donald Trump’s view of growth and market performance as criteria for political success before the midterm elections supports the expectation that liquidity conditions will remain loose.
This approach paves the way for US assets to exhibit relatively superior performance on a global scale. While the markets progress with the belief that possible tensions are largely reflected in prices, the view that the upward trend can be maintained unless an unexpected shock occurs is gaining ground.
Bitcoin’s Position: Rotation Expectation
In the cryptocurrency market, Bitcoin seemed to lag behind stocks and precious metals until recent weeks. However, exceeding the $95,000 level indicates that the technical resistance that has been going on since November has been broken. According to QCP Capital, expectations of monetary expansion in the US and concerns about the purchasing power of fiat currencies make gold and silver stand out, making Bitcoin a relatively cheap alternative.
Analysts emphasized that this price difference could encourage investors to make a portfolio rotation towards cryptocurrencies. Following the strong performance in precious metals, a similar hedging narrative is likely to gain strength again for Bitcoin. In such a scenario, the cryptocurrency market is expected to accompany the global risk-on wave, albeit with a delay.
On the other hand, the risks have not completely disappeared. The US Supreme Court’s decision on tariffs and possible escalations in the Middle East and Latin America are being closely monitored. QCP Capital argues that pullbacks can be considered as buying opportunities unless a new uncertainty headline emerges in current conditions.
