QCP： The Federal Reserve may maintain the current level of interest rates, while BTC and risk assets are on a downward trend

Odaily Planet Daily News: QCP Capital stated on its official channel that global risk aversion has led to a decline in stock markets, gold, and Bitcoin prices, and rumors of stagflation on Wall Street are intensifying. Although it is still too early to confirm the trajectory of stagflation, the market's response to recent developments indicates that market anxiety is intensifying. The long positions in the US dollar have begun to reverse, and the recent collapse has forced traders to reduce their exposure. BTC continues to align with the downward trend of risk assets, and the outflow of ETF funds confirms a lack of confidence. In a volatile market, as traders compete to reduce their exposure, cryptocurrency remains the first asset to be liquidated, and caution is advised as the market remains fragile. In addition, personal consumption expenditure on Friday (expected to be 2.5% year-on-year) remained higher than the Federal Reserve's target of 2%. Unless there are clearer signs that inflation is moving towards 2%, the Federal Reserve may maintain the current level of interest rates. The market currently expects two interest rate cuts in 2025, with the first one in June or July. In the coming weeks, consumer and retail confidence surveys will be crucial. These indicators often outperform actual economic data and may provide early warning signals of stagflation.