PANews reported on December 18 that Singapore crypto investment institution QCP Capital published an article today saying: "The last Federal Reserve meeting of 2024 will be held tonight. Although it is the festive Christmas season, we have few reasons to celebrate. The Federal Reserve is expected to cut interest rates by 25 basis points at this meeting and release the final dot plot for the year.
We expect tonight's statement and dot plot to have a slightly hawkish tone, reflecting the stability of US inflation above the Fed's 2% target and the strong performance of the labor market. The statement is expected not to specify the path of rate cuts in 2025, but to emphasize the difficulties faced in accelerating rate cuts. At the same time, the dot plot is expected to show 3 rate cuts in 2025.
Although we do not believe that the Federal Reserve meeting will have much influence, liquidity in various markets has gradually decreased. This may lead to increased price volatility and could even trigger large-scale liquidations. The technical outlook for Bitcoin also appears cautious, as Bitcoin has shown a evening star pattern on the daily chart and is displaying bearish divergence. If the price drops, please remain calm and do not waver in your positions. Given that 2025 could potentially be a bullish year for the cryptocurrency market, especially after Trump takes office, holding on could yield profits.
