QCP Capital: Fed Chairman Powell is expected to maintain a cautious and data-dependent stance

Odaily Planet Daily News QCP Capital posted on its official channel that in the market volatility after the release of CPI, buying on dips became the winner in overnight trading. The overall CPI rose more than expected, while the core CPI also rose. This change reversed market expectations, and the market now expects the Federal Reserve to postpone the first rate cut this year to December, triggering a sharp sell-off in the market. Bitcoin plummeted from $96,500 to $94,000, during which $163 million of long positions were liquidated. However, BTC stabilized at $94,000 and rebounded strongly to $98,000 during the New York trading session, with a net increase of 4.4%. In the options market, call options continue to be favored, especially call options with a recent expiration (Friday, February 14), which accounted for most of the trading volume. In the past 24 hours, call options with strike prices between $97,000 and $100,000 were the most popular. In the big picture, the market is probably waiting to see how Trump will react to the CPI increase. Will he continue to argue that the Fed should cut rates further this year, or will he give the Fed room to decide policy based on data? Given that Trump’s legacy of wanting a soft economic landing is being tested, we expect Fed Chairman Powell to remain cautious and maintain his data-dependent stance before cutting rates.