According to Odaily, QCP Capital has shared insights on its official Telegram channel regarding the final Federal Reserve meeting of 2024, scheduled for tonight. Despite the festive Christmas atmosphere, the firm notes limited reasons for celebration. It is anticipated that the Federal Reserve will lower interest rates by 25 basis points during this meeting and release the year's final dot plot. The statement and dot plot are expected to carry a slightly hawkish tone, reflecting stable U.S. inflation above the Federal Reserve's 2% target and a robust labor market. The statement is likely to refrain from committing to a path for rate cuts in 2025, highlighting the challenges of accelerating rate reductions. Additionally, the dot plot is expected to indicate three rate cuts in 2025.
While QCP Capital does not foresee significant impacts from the Federal Reserve meeting, it notes that liquidity across all markets has gradually decreased. This reduction in liquidity could lead to price volatility and potentially trigger large-scale liquidations. The technical outlook for Bitcoin also appears cautious, with a bearish divergence and an evening star pattern forming on the daily timeframe. In the event of a downturn, QCP Capital advises against being forced to liquidate positions. With 2025 anticipated to be a potential bull market year for cryptocurrencies, especially under Trump's administration, maintaining the current status could prove beneficial.
