QCP: The FOMC meeting brings a bullish catalyst to the market, and the options market shifts back to call options

ChainCatcher news, QCP published on its official channel stating that last night's FOMC meeting brought a long-awaited bullish catalyst to the market, pushing Bitcoin prices to break through $85,000 with a significant increase. The Federal Reserve decided to start tapering its "quantitative tightening" plan from April. The market interpreted this as an indirect rate cut, reinforcing expectations that the Fed may begin easing policies as early as June.

As of the writing of this article, the market anticipates three rate cuts in 2025, scheduled for June, September, and December. Aside from the current excitement, the Fed's tone is noticeably cautious. Policymakers have lowered the economic growth forecast to 1.7% (a reduction of 0.4 percentage points), while raising the inflation forecast to 2.8%, indicating that the risk of stagflation is rising. Additionally, the Fed's dot plot shows a more hawkish shift compared to last December, with the number of officials expecting no rate cuts in 2025 increasing to four.

In the options market, market positioning has returned to normal, with skew shifting back towards call options. This contrasts sharply with earlier this week when skew was leaning towards put options. The key test now will come when the U.S. market opens tonight.