QCP Capital: The Fed may decide to cut interest rates by 25 basis points tonight, which may lead to large-scale liquidations

QCP Capital posted on its official Telegram channel: "The last Fed meeting of 2024 will be held tonight, and despite the strong festive atmosphere of Christmas, we see little reason to celebrate. The Fed is expected to cut interest rates by 25 basis points at this meeting and release the last dot plot of 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 a strong labor market. The statement is expected to remain uncommitted on the path of interest rate cuts in 2025, emphasizing the difficulty of accelerating rate cuts. At the same time, the dot plot is expected to convey that there will be 3 rate cuts in 2025. While we do not think the Fed meeting will have much impact, liquidity in all markets has gradually decreased. This may lead to price volatility, which may trigger large-scale liquidations. The technical outlook for BTC is also cautious, with BTC forming an evening star pattern on the daily time frame and showing a bearish divergence. Don't be forced to liquidate your position if there is a decline. With 2025 expected to be a potential bull market year for cryptocurrencies, especially with Trump in power, it may pay to keep the status quo."