QCP Insights: Crypto Surges as US-Saudi Trade Deal Sparks Market Rebound

CN
10 hours ago

Digital Assets Lead Market Rebound Amid Landmark Trade Deal and Softening Consumer Price Index (CPI)

The crypto market is back in rally mode following the announcement of a $600 billion trade pact between the United States and Saudi Arabia. The agreement, which includes a significant reduction in tariffs, revived risk-on sentiment and lifted digital assets to fresh highs.

According to QCP’s daily insights, the rebound was led by bitcoin climbing toward its previous all-time high as traders rotated back into risk assets. Ether followed, narrowing its underperformance with the ETH/ BTC ratio rising to 0.025. The broader crypto surge outpaced even traditional equities, with the S&P 500 recovering from a recent 17% drawdown to return flat on the year.

Macroeconomic tailwinds further supported the rally. U.S. CPI data came in softer than expected, reinforcing the case for rate cuts later this year. While the Fed remains cautious, market expectations have shifted, now anticipating two cuts in 2025.

Crypto markets may also benefit from upcoming catalysts. Notably, Coinbase’s official inclusion into the S&P 500 on May 19 could trigger institutional flows, as passive funds adjust their portfolios to track the benchmark.

For digital assets, the convergence of improving macro sentiment, geopolitical breakthroughs, and structural milestones appears to be setting the stage for continued upside.

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