QCP Asia has released its latest market observation, highlighting a noticeable cooling of global risk appetite over the past week. According to Odaily, unexpected changes in the Japanese market and rising geopolitical tensions have pushed markets into a defensive stance, weakening stock performance and refocusing attention on interest rates and macroeconomic policy risks.
QCP notes that the repricing of Japanese government bond yields is not only increasing domestic financing costs but is also transmitting through global markets via cross-border duration allocation, financing assumptions, and risk premiums. In the current environment, where markets are highly sensitive to policy misjudgments, Japan has once again become a potential core source of volatility.
Meanwhile, trade friction risks between the U.S. and Europe have resurfaced. Statements related to tariffs and potential countermeasures have heightened the possibility of a more confrontational global trade environment. Market focus has shifted from the rhetoric itself to whether it will materially tighten financial conditions and weaken market confidence.
In this context, the cryptocurrency market is also under pressure. QCP points out that Bitcoin's current performance is more akin to high-beta macro assets rather than a safe haven tool, making it highly sensitive to changes in interest rates, geopolitical events, and cross-asset volatility. Until clearer policy signals emerge, crypto assets are likely to continue reacting passively, struggling to establish a definitive trend.
