QCP Capital: Forex markets and New Hampshire legislation drive Bitcoin gains today

Odaily Planet Daily News: QCP Capital posted on its official channel that the fluctuations of the Taiwan dollar quickly spread to the regional foreign exchange market, and the Hong Kong dollar/US dollar currency pair was significantly impacted. The Hong Kong dollar exchange rate climbed to the strong end of the trading range, approaching the lower limit of the exchange rate pegged to the US dollar at 7.75. The Hong Kong Monetary Authority acted decisively and sold a total of HK$73.3 billion in two operations to defend the linked exchange rate system. The effect was significant. Hong Kong interbank offered rates fell across the board, hedge funds closed their USD/HKD carry trades, and the one-month interest rate plummeted by nearly 60 basis points in a single day. The market is currently stable, but if the Hong Kong dollar continues to strengthen, the HIBOR rate may fall further and the liquidation situation may become more disorderly. The unwinding in foreign exchange markets also fueled speculation of an easing of U.S. trade tensions, with Bitcoin responding quickly, rising 3% to $97,000, erasing weekend losses. But the rally was not driven solely by the foreign exchange market. Another catalyst came from New Hampshire, where the governor approved a landmark measure establishing the nation’s first state-level Bitcoin reserve. The legislation allows up to 5% of public funds to be allocated to cryptocurrencies and precious metals. For now, Bitcoin is the only digital asset that qualifies, as the market capitalization threshold is set at $500 billion. While this is just a small policy adjustment at the state level, it is a big step forward for the institutional future of cryptocurrency.