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QCP Capital: It is expected that Federal Reserve Chairman Powell will maintain his cautious and data-dependent stance

QCP Capital: It is expected that Federal Reserve Chairman Powell will maintain his cautious and data-dependent stance

Bitget2025/02/13 09:43

Singapore's cryptocurrency investment firm QCP Capital announced today that buying on dips became the winner in overnight trading amid market volatility following the release of the Consumer Price Index (CPI). The overall CPI increase was higher than expected, and core CPI also rose. This change reversed market expectations, with markets now expecting the Federal Reserve to postpone its first rate cut this year until December, triggering a significant sell-off in the market.

Bitcoin plummeted from $96,500 to $94,000, during which $163 million worth of long positions were liquidated. However, BTC stabilized at $94,000 and rebounded strongly to $98,000 during New York trading hours for a net gain of 4.4%. In terms of options markets, call options continue to be favored especially those expiring soon (Friday February 14th) accounted for most of the trading volume. Over the past 24 hours call options with strike prices between $97k-$100k have been most popular.

Looking at the bigger picture,the market may be waiting for Trump's reaction to rising CPI. Will he continue advocating for further Fed cuts this year or will he give space for Fed policy decisions based on data? Considering Trump’s desire for a soft landing legacy is being tested we expect Fed Chairman Powell will remain cautious and maintain his data-dependent stance before cutting rates.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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