A recent report by QCP brings attention to the ongoing search for equilibrium in risk assets following the weekend’s high volatility. Stock indices are currently trading approximately 1.5% below their latest peaks, while Bitcoin 
$95,195 is valued around 10% less than its previous high. The market is pricing in a potential 125 basis points interest rate cut in swap contracts by the end of 2026. QCP analysts indicate that even with delayed employment data due to a partial government shutdown in the United States, Federal Reserve Chairman Jerome Powell’s confirmation of a quarter-point rate cut this month has temporarily bolstered risk appetite. The price of gold per ounce, meanwhile, has soared by 52% since the beginning of the year, marking a record at $4,022.
Expectations on Fed Rate Cuts and Gold’s Ascent
With liquidity concerns rising, corporate demand for gold is increasing. Central banks added over 800 tons of gold to reserves in the first half of 2025. Among the prominent buyers are China, Turkey, and India. Declining real returns and diversifying reserves hint at a broader portfolio insurance role, surpassing the traditional inflation hedge narrative.
Projections by major institutions further solidify this trend. Both Bank of America and J.P. Morgan believe the gold price could reach the $4,500–5,000 per ounce range by 2026. The market narrative is shifting from interest sensitivity to a liquidity-centered regime. Central bank purchases, dedollarization trends, and corporate hedge strategies support the upward move of the precious metal.
Bitcoin’s “Digital Gold” Challenge
According to QCP analysts, despite the weekend tremor, the correlation between Bitcoin and gold has surpassed 0.85. The synchronized inflow and outflow suggest shared flows between traditional and digital value stores. Bitcoin’s approach to a new maximum just before the weekend underscores increasing corporate balance sheet positioning.
ETF activities are keeping the flow outlook vibrant. The last trading day witnessed net inflows of $102.7 million into spot Bitcoin ETFs and $236.2 million into spot Ethereum 
$3,334 ETFs. Risks associated with tariffs reappearing on the agenda and shifts in liquidity dynamics will test the sustainability of the “digital gold” narrative in the next macro phase.
