QCP: The Federal Reserve May Lower Its Expected Number of Rate Cuts, Bearish for Bitcoin and Other Risk Assets
QCP's analysis points out that against the backdrop of rising geopolitical tensions and inflationary pressures, the Federal Reserve faces a complex situation at tonight's policy meeting. The Fed is expected to keep interest rates unchanged while delivering a hawkish message, emphasizing the additional upside inflation risks brought by geopolitical uncertainty. The current market consensus anticipates two rate cuts in 2025 and another two in 2026. However, QCP believes the Fed may lower its rate cut projections in the latest dot plot. Should the Fed make such an adjustment, the resulting decrease in liquidity expectations could put pressure on risk assets, including Bitcoin and the broader digital asset market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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