QCP Capital: Bitcoin's risk premium relative to stocks is expected to decrease

Odaily News QCP Capital said that yesterday, Bitcoin spot ETFs saw a record net inflow of $1.38 billion, which, combined with the optimism brought by Trump's victory and the widespread expectation of a 25 basis point rate cut by the Federal Reserve, pushed the price of Bitcoin to $77,000 earlier this morning. However, investors have begun to withdraw some of the "Trump trade": the US dollar has given up most of its post-election gains, and Treasury yields have also fallen back to their recent range after a brief surge. As the market considers Trump's plan to impose a 60% tariff on China and fiscal issues such as rising national debt, Bitcoin's risk premium relative to stocks is expected to decrease, which may put it on track to outperform other risky assets. Bitcoin's continued bullish sentiment may also form a feedback loop, where increased ETF inflows push up Bitcoin prices, and rising Bitcoin prices will attract more retail capital and systematic funds to buy as volatility decreases.