HashKey Livio Global Capital Continues to Ride the SeeSaw as Liquidity Demands Surge Bitcoin Set to Break Historical Record

Coin World News Report:
Source: HashKey, first published on “FT Chinese”, authorized reposting
Just a month after the interest rate cut, global capital markets have experienced several large-scale fund flows. The US stock market’s technology sector rebounded first, leading to an increase in the Nasdaq Composite Index, while the S&P 500 Index and Dow Jones Industrial Average reached new highs. The A-share and Hong Kong stock markets also saw a strong rally before the National Day holiday. This week, funds have returned to the Nasdaq and the cryptocurrency market, driving the prices of Bitcoin-related assets to rise above $68,000 and are expected to break new highs soon.
Funds are rapidly switching between different tracks, creating a “seesaw” effect. Currently, global liquidity is in high demand. How should we interpret the market situation? What will be the trend of cryptocurrency assets?
Bitcoin Challenges Historical Price Highs
This week, the cryptocurrency market has performed well, with Bitcoin rising steadily and approaching the $68,000 mark. Personally, I expect it to challenge the resistance level of $70,000 to $72,000 in the near future and break through historical highs.
The timing of the current market rally is significant and may be related to the upcoming US presidential election. As the election day on November 4 approaches, the stability of the financial market becomes particularly important. Before the election, market stability and prosperity play a crucial role in the Democratic Party’s prospects. Therefore, maintaining a stable market operation is of utmost importance. After the election, regardless of who takes office, stabilizing and stimulating the financial market will become a key agenda for the new government.
At the same time, looking at the global situation, the ongoing tension in Northeast Asia has led to cautious investment attitudes towards Asian markets from international funds, and the pace of “eastward flow” has clearly slowed down. Against this background, the US election results will reshape the international geopolitical landscape. The foreign policy orientation of the new government, whether it is the attitude towards the Russia-Ukraine conflict or the response to the situation in the Middle East, may trigger a chain reaction. The changes in these geopolitical factors will affect global risk aversion and capital flows, and the financial market will face significant adjustments in a period after the election.
In addition to political factors, the cryptocurrency market itself is also releasing signals worthy of attention. First is the breakthrough in the stock price of MicroStrategy (MSTR). As the largest publicly traded Bitcoin holder, the stock price of MicroStrategy not only reflects the company’s valuation, but also represents the market’s expectation of Bitcoin’s future price. The stock price of MSTR has risen by about 50% in the past month, which can be seen as an expression of institutional investors’ optimistic attitude towards cryptocurrency assets.
Secondly, Bitcoin has completed the necessary consolidation. Over the past year and a half, Bitcoin has undergone a long period of consolidation, successfully digesting selling pressure from countries such as Germany and the United States. These selling pressures mainly come from Bitcoin spot ETFs approved by regulatory agencies and various institutional liquidations. After the market has fully absorbed these sell-offs, the timing for Bitcoin’s reversal has matured.
In addition, Ethereum is currently showing good investment value. In the market correction over the past six months, Ethereum has experienced a greater decline compared to Bitcoin, creating a significant price gap. Based on historical experience, this gap often gets repaired in subsequent market trends, making Ethereum attractive to investors at its current price level.
Global liquidity is in high demand, and the cryptocurrency market has great potential
In addition, there is an interesting phenomenon between traditional capital markets and the cryptocurrency market. When traditional capital markets are strong, the cryptocurrency market tends to be weak, and when cryptocurrency asset prices rise sharply, some traditional capital markets perform poorly, creating a unique “seesaw” effect. This “seesaw” effect reveals the flow of global funds – funds always chase the most speculative market opportunities. In the context of intensified global competition, changing policies, and the emergence of new asset categories, capital is accelerating towards areas that can bring the highest returns.
Although we are currently seeing the peculiar phenomenon of liquidity “jumping back and forth,” from a long-term perspective, global capital liquidity will inevitably be injected into the cryptocurrency market on a large scale, and the turning point is also approaching.
First of all, from the perspective of economic logic, the rise of the cryptocurrency market is attributed to the free flow of capital and the greatly improved efficiency. Traditional financial markets are constrained by many regulations and intermediaries, limiting the liquidity of capital globally. The cryptocurrency market, through blockchain technology, achieves the free flow of funds globally and reduces friction costs in capital flow.
By reducing intermediaries, improving transparency, and enhancing the efficiency of financial services, the cryptocurrency market can adapt to market changes more quickly and meet the needs of global investors. This improvement in liquidity and efficiency will have a greater impact on the global economy and promote the direction of capital allocation towards optimization and rationality. At the same time, with the continuous popularization and application of cryptocurrency technology, more ambitious scenarios can be realized in the future. With the continuous development of RWA and DePIN, traditional economies can be driven to innovate, which is an important driving force for the future potential of the cryptocurrency market.
At the same time, the emergence of the “seesaw effect” means that in the industry’s development over the past two years, cryptocurrency assets have become the mainstream choice of the capital world alongside traditional assets. The cryptocurrency market has such great potential, and one important reason why it has not attracted large-scale funds in the past is the lack of compliance paths. However, now the United States has launched Bitcoin spot ETFs, introduced cryptocurrency regulatory frameworks, and supported the development of Web3, opening a compliant path for the development of the cryptocurrency market.
Nowadays, the “seesaw” of global liquidity is gradually tilting towards Hong Kong.
Since 2023, Hong Kong has implemented a new cryptocurrency regulatory framework, allowing retail investors to participate in cryptocurrency asset trading through licensed exchanges. At that time, HashKey Exchange became the first licensed exchange to provide trading services to retail investors. Today, HashKey Exchange has a total trading volume exceeding HKD 538 billion, with user assets exceeding HKD 5 billion. As of October 16th, according to the latest data from Coingecko, HashKey Exchange ranks in the top 8 among global exchanges and is the highest-ranking licensed virtual asset exchange in Hong Kong.
Hong Kong not only provides existing policy guarantees but also has the advantages of innovation and technological development, which can effectively attract the inflow of global liquidity capital. For investors, this combination means that they can safely enter a highly innovative market while enjoying strong legal and policy protection. Through this two-way liquidity bridge, Hong Kong can continue to consolidate its position as a global financial hub and further enhance its importance in the international capital market by leveraging the development of Web3 and new sources of liquidity.
In this era of global liquidity and capital allocation, the cryptocurrency market, with its unique advantages and innovative potential, is becoming a new battlefield in the global capital competition. With the continuous advancement of technology and the gradual improvement of regulations, the cryptocurrency market is expected to have broader development space and become an indispensable force in global capital allocation.