Viewpoint: Inflation risks may limit the Federal Reserve's policy actions in 2025 and affect risk assets

ChainCatcher news, according to The Block, analysts expect the Federal Reserve to cut interest rates by 25 basis points at the Federal Open Market Committee meeting on Wednesday. While lower rates typically boost risk assets like Bitcoin, comments and economic forecasts from the Fed during Wednesday's meeting may dampen expectations for further rate cuts amid ongoing inflation concerns.

Recent U.S. CPI and PPI data have raised worries about potential price pressures next year, especially considering speculation around the economic policies of U.S. President-elect Donald Trump. Furthermore, although macroeconomic events still hold influence, QCP Capital analysts believe that Bitcoin's recent rise is primarily driven by market sentiment.