QCP Capital: Forex markets and New Hampshire legislation drive Bitcoin gains today

Odaily News QCP Capital posted on its official channel that the volatility of the Taiwan dollar quickly spread to the regional foreign exchange market, and the Hong Kong dollar/US dollar currency pair was significantly impacted. The Hong Kong dollar exchange rate climbed to the strong end of the trading range, close to the lower limit of the US dollar peg of 7.75. The Hong Kong Monetary Authority took decisive action and sold a total of HK$73.3 billion in two operations to defend the linked exchange rate system, with significant results. The Hong Kong interbank offered rate fell across the board, and hedge funds closed their positions in the US dollar/Hong Kong dollar carry trade. The one-month interest rate plummeted by nearly 60 basis points in a single day. The market is currently stable, but if the Hong Kong dollar continues to strengthen, the HIBOR rate may fall again, and the liquidation situation may be more disorderly. The liquidation of foreign exchange markets has also triggered market speculation about the easing of US trade tensions. Bitcoin responded quickly, rising 3% to $97,000, erasing the weekend's losses. But this rise is not driven only by the foreign exchange market.
Another catalyst came from New Hampshire, where the governor approved a landmark measure to establish the nation’s first state-level Bitcoin reserve. The legislation allows up to 5% of public funds to be allocated to cryptocurrencies and precious metals. For now, Bitcoin is the only digital asset that qualifies, as the market cap threshold is set at $500 billion. While this is only a small policy adjustment at the state level, it is a big step forward for the institutional future of cryptocurrencies.