QCP: It is expected that there is still room for further growth in the cryptocurrency market, and Coinbase's inclusion in the S&P 500 index may become a new catalyst for the cryptocurrency market

According to BlockBeats, on May 14th, QCP released a daily market observation stating that the US Saudi trade has driven a market rebound, with the US signing a milestone $600 billion trade agreement with Saudi Arabia, prompting the cancellation of tariffs and triggering a new wave of risk appetite. The lower than expected US CPI eased market concerns about inflation and boosted bets on interest rate cuts. But the Federal Reserve still maintains a cautious attitude. The current market expectation for the first interest rate cut is in July, but we believe a more realistic time point could be in September. Two interest rate cuts are expected in 2025, compared to four expected a month ago. In this round of rebound, the cryptocurrency market has outperformed the stock market, and Bitcoin prices are approaching historical highs. Ethereum is striving to catch up, with the ETH/BTC exchange rate currently at 0.025. We believe that there is still room for further growth in digital assets, especially in the context of Coinbase's official inclusion in the S&P 500 index on May 19th. Historical experience has shown that index inclusion usually brings short-term catalytic effects, as passive funds need to adjust their allocation to be closer to the benchmark index.