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

Odaily reported that QCP Capital posted on its official Telegram channel stating: "The last Federal Reserve meeting of 2024 will be held tonight. Although the holiday season is in full swing, we see few reasons to celebrate. The Fed is expected to cut rates by 25 basis points in this meeting and release the final dot plot of the year. We expect tonight's statement and dot plot to have a slightly hawkish tone, reflecting US inflation stabilizing above the Fed's 2% target and a strong labor market. The statement is expected to refrain from committing to a path of rate cuts in 2025, emphasizing the difficulty of accelerating rate cuts. Meanwhile, the dot plot is expected to convey three rate cuts in 2025. While we don't believe the Fed meeting will have a major impact, overall market liquidity has been gradually decreasing. This could lead to price volatility and potentially trigger large-scale liquidations. The technical outlook for is also cautious, as has formed a bearish evening star pattern on the daily timeframe and is showing a bearish divergence. If a decline occurs, do not be forced to close positions. With 2025 expected to be a potential crypto bull market year, especially under a Trump presidency, maintaining the status quo may be beneficial."