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China stimulus and favorable global macroeconomic factors will create a bullish environment for risky assets like crypto, according to QCP Capital.

“We believe more easing is coming from the People’s Bank of China (PBoC), and they have communicated as much,” QCP Capital said in a Sept. 25 blog post. “All major central banks, except Bank of Japan, are now ready to inject more liquidity into the market. The macro space continues to look more and more bullish for risk assets, including crypto.”

The People’s Bank of China (PBoC) cut interest rates today and plans to reduce the cash banks must hold as reserves as part of a broad stimulus package to support its faltering economy.

“The stars are aligning in the macro environment, which could drive crypto prices higher,” the QCP analysts said. “We know how explosive crypto prices can be, and with so many bullish catalysts, we think the next move higher will leave many people surprised and sidelined.”

QCP Capital said that the yield between the 2-year and 10-year US Treasury notes continued to widen over the past month, suggesting optimism about economic growth that is likely to benefit risk assets such as cryptos in the “medium to long term.”

The analysts also mentioned a recent speech by Kamala Harris about encouraging AI and digital asset innovation as an indication of crypto adoption, which could be bullish for the market as well.

In addition to the speech by the Democratic candidate, QCP Capital also sees a decision by the US Securities and Exchange Commission (SEC) to approve options trading for BlackRock’s IBIT is another major positive development.

Analyst Says Now Is The Time To Fully Allocate To Crypto

The market capitalization of the crypto market increased slightly in the last 24 hours to around $2.24 trillion. Despite the minor uptick in valuation, renowned analyst and trader Michael van de Poppe said in a Sept. 24 post on X that now “is the best moment to be fully allocated into crypto.”