TechFlow news: On August 27, a new report from QCP Capital indicated that the equal-weighted S&P 500 has hit a record high, signaling that bullish momentum is spreading beyond the "Magnificent Seven" tech giants into broader markets. The report emphasized that in two of the past three rate-cutting cycles, small-cap stocks outperformed large-cap stocks. Given the growing correlation between cryptocurrencies and small-cap equities, Bitcoin may outperform other risk assets during this current rate-cutting cycle.
In the crypto market, spot Bitcoin ETFs have seen strong inflows for 12 consecutive days, while spot Ethereum ETFs have faced outflows for eight straight days. Bitcoin's dominance in options trading reflects the macro-driven nature of the current easing cycle. QCP observed modest bullish call spread buying at the options desks, along with a recent decline in volatility—signals indicating cautious market optimism.
QCP recommends accumulating spot Bitcoin weekly at an 8.27% discount (USD 57,600) as long as the spot price remains below USD 67,000 for the remainder of Q3. They expect limited market volatility this week, as investors await clearer signals on the magnitude of September rate cuts.
