QCP Capital's latest analysis points out that the Federal Reserve Monetary Policy Committee (FOMC) will hold a highly anticipated monetary policy meeting today (early morning of September 19, Beijing time). Based on federal funds futures pricing, market participants expect a 33% probability of a 25 basis point rate cut and a 66% probability of a 50 basis point rate cut. Of the 114 economists surveyed by Bloomberg, 104 predicted a 25 basis point rate cut and only 9 expected a 50 basis point rate cut. This divergence continues into the long-term forecast to 2026. The report points out that there are multiple uncertainties in the outcome of the FOMC meeting, including specific interest rate decisions, the dot plot in the latest Summary of Economic Projections (SEP), and the press conference of Federal Reserve Chairman Powell.
Analysts expect financial market volatility to rise significantly in the days following the meeting, which could mark the start of a new macroeconomic trend. As a potential interest rate cut cycle begins, QCP advises investors to focus on hard assets, particularly Bitcoin. Despite the potential for a short-term pullback and high volatility, analysts are bullish on Bitcoin price action over the long term. #crypto2023A
