QCP Capital: Gold and Bitcoin Strengthen Together as Market Funds Shift Towards “Safe-Haven Duopoly”

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Market Panic Drives Demand for Safe Havens

The report indicates that gold prices continued their upward trend in overnight trading, strongly breaking through the $3,500 per ounce mark, setting a new historical high. QCP analysis believes that this surge reflects a wavering market confidence in traditional assets such as U.S. stocks, U.S. Treasury bonds, and the dollar, with the underlying core risk stemming from growing concerns about the independence of the Federal Reserve (Fed).

QCP specifically mentioned that former President Trump continues to exert pressure for interest rate cuts, with reports suggesting he may seek legal means to replace the current Fed Chair ### Powell. This news has caused investors to feel uneasy about the policy outlook, further intensifying market risk aversion. The report states:

“The market is exhibiting typical risk-averse behavior, with gold becoming the preferred safe-haven asset, while Bitcoin, among digital assets, is beginning to show similar characteristics.”

Institutional Demand is Recovering

Recently, Bitcoin has also demonstrated strong performance, with prices rebounding to highs not seen since early April. QCP notes that spot buying during U.S. trading hours dominated trading volume, even surpassing perpetual contract trading, indicating a return of real funds to the spot market.

Among these, Coinbase premiums reached a multi-month high; meanwhile, the daily net inflow of funds into Bitcoin spot ETFs hit $381.3 million. QCP believes these indicators clearly reflect that “institutional demand is recovering.” Additionally, there is a comprehensive call option skew emerging in the Bitcoin options market, indicating that market participants generally expect upward price movement, with both short-term and long-term positions showing a consistent direction.

Cracks Emerging in the Credit Market

Apart from asset price performance, QCP also warns that the U.S. credit market is showing signs of pressure. The report cites Bloomberg data indicating that the cost of default insurance (CDS) for investment-grade bonds has risen to a weekly high, suggesting that capital markets are reassessing risk premiums. QCP assesses that if the confrontation between Trump and the Fed escalates further, market volatility may intensify, and investors need to closely monitor subsequent developments.

Capital Seeking New Havens Amid Turbulence

In summary, QCP believes that the current trends of gold and Bitcoin reflect a global capital rebalancing away from dollar-denominated assets. Between traditional safe-haven assets and digital assets, gold and Bitcoin are currently taking on the role of “dual core assets,” becoming the main recipients of capital in uncertain times.

“Before the storm arrives, capital always seeks shelter in advance. Today, gold and Bitcoin are the gleaming beacons in the eyes of the market.”